Real Estate Investing and Board Games: a Comparison

I LOVE board games. Winning requires adapting your strategy depending on who you are facing, the approach they are taking, and the "hand you've been dealt", so to speak. I cannot help but see parallels between strategy games and real estate investing! 

If you have yet to make your first deal, hopefully you will find this post encouraging. You may even gain an appreciation for board games!

Picking a Strategy

Whether you're playing a board game or investing in real estate, it is crucial to pick a strategy. if you just buy a property with the hopes you will make money in the process, that is not going to be good enough. 

Let's look at Settlers of Catan, for a moment. There are multiple avenues you can take to win points - build the longest road, upgrade your settlements to cities, build the largest army, etc. It isn't usually possible to outperform all of the players in each of these areas, so what do you do? You pick the strategy that works the best considering your current situation, and you commit to it. Your inner dialogue will be something like:

"I may not be able to play as many knights as my opponents, but I'm going to get one thing right: I'm going to build the longest road, dang it!"

The same is true for real estate investing. Your situation is different than anyone else out there. You have to ask yourself these questions: What do I have going for me? What am I looking for? What challenge am I equipped to take on that may be more of a stretch for my competition? 

My Strategy

I am young and single. The way I look at it, this gives me a few advantages:

1. I can work longer hours than those with a family
2. I can save more money, since my expenses are lower
3. I can make a home purchase primarily as an investment, without needing to come to an agreement with a partner that isn't psyched about real estate investing

Here is what I have started to do to take advantage of my position:

1. Side projects - I have a full-time job in web development and digital marketing. There are plenty of small companies that have needs in this area, but don't have the capacity to hire someone to work full-time. I've started working for a real estate agent, which has been really great so far. I've been able to make improvements to her website, as well as other members of her team. I'm particularly excited because this has given me the opportunity to learn more about real estate, and meet agents that are investors. These connections will help me out in the long run (and I can't complain about an extra source of income!).
2. Save money - This is self explanatory.
3. Investment strategy - I've consistently listened to the BiggerPockets podcast, as well as reading books and articles on real estate investing. I am very excited to purchase a house hack for my first property. At this point, there are two strategies I have considered: buying a duplex or triplex, or buying a single family home while renting to roommates. They each come with their pros and cons, and I'm analyzing both types of deals several times a week. I would be particularly excited about a single-family home if there is an opportunity to add an additional bedroom or bathroom.

To Sum it all up

Real estate investing is a lot like playing board games. You have to do the best with what you have, pick a strategy, and adapt when conditions change.

I may not "win" with my first purchase, but I'm picking my strategy, and committing to doing it well. I'd love to hear your thoughts!