Investing, speculation, or just a job???

[Michael Delpier]

So...... What is real estate investing?

Being a Realtor, wholesaler, or flipper is clearly a job because you do not end up with an asset that kicks off passive income.

Large apartments are investing because they do cash flow, and their value is based on their performance.

But what is SFR and small multi's? Are they speculation or an investment?

Yes, I am being controversial, but this is a serous question.

SFR's value is what someone will pay for it in a given market. Markets are unpredictable. Just ask those "experts" who lost everything in the housing crash.

Take my personal, first hand experience. I bought a condo 25% below market. The market was hot and it was a fixer. I rehabbed it quite nicely for little money. The market crashed and I went from having 35% equity to being underwater. It took 9 years to rise above water. During these 9 years I was cash negative. Obviously not an "investment". It did not cash flow and it was subject to the whim of the market.

"They" say you make your money when you buy. And arguably, I bought right. But the market changed. That is where I question the investment vs. speculation.

So...What are your thoughts? Are SFR's investments, speculation, or both? What about small multi's? Are other areas of REI speculation? NNN's? Notes? large apartments? Land?

Your answers will help focus my niche and education, so thanks!!!