What's Working For Investors Right Now?

I have conversation with real estate investors on a daily basis. There is one strategy that I have been hearing from those who have been investors for 5 or more years. I am not suggesting that any investor that has less experience than 5 years isn't doing this strategy or that this strategy is the best (because you can make anything work). Just based on my conversations and with the people I talk to, these are the trends I am hearing.

Here are some things they are currently looking for:

1. The investors that are sitting around 5 or more years of experience are looking to grow and scale. They are looking for properties with more units solely based on economies of scale (if you own a duplex and 1 side is vacant, you are only collecting 50% of the rent that month. If you own an 18 unit apartment complex and 1 unit is vacant, you are still collecting 95% of rents). 

2. Trying to find properties that have been mismanaged. Mismanaged properties lead to a higher vacancy rate and lower rents. 

3. Properties that needs cosmetic renovations to increase rents $150-$200 or more per unit. 

Finding properties like these leaves room for an investor to get the management systems back up and running to decrease the vacancy rate and increase the rent by renovating units. I think I am seeing investors with 5 or more years of experience doing this strategy is for a few reasons. They have built relationships with local banks, contractors, realtors, attorneys, etc and they have the capital to be able to invest in these large deals.