.#2 – TimeActive real estate investments require more time, during the initial acquisition and throughout the project lifecycle, while passive investments only require your time up front, during the research phase.#3 – InvolvementHow hands-on do you want to be?

Al of us, just as the market itself, go through life-cycles where both can serve a purpose.As @Brian Burke  mentioned, DST accommodates 1031.  

We suspect that some buyers now that are beating us out for deals here right now offering $100,000's of thousands more than our offers are modeling a much more aggressive growth model that we don't think can be sustained over the lifecycle of the deal, or they have an investor database that is willing to take significantly less returns on their investment capital. 

From talking with thousands of investors over the years at all different points and net worth in life I have come to understand the thinking changes at the various levels of age, their investing point in their life cycle, how much return is enough for them, etc.People might call me crazy but I do not think about money much.

So I can tell you what a sound first deal looks like for a new investor with enough capital for one deal:Purchase Price: 80k - 100kRehab costs: 50% - 60% of purchaseARV: (purchase price + rehab costs)/.7That deal will require around 23k - 25k in liquidity to see it through its 120 day - 150 day lifecycle. 

@Aaron Ormiston For flips and driving for dollars your best bet is going to be homes that are in the right life cycle to be renovated and flipped for a profit.

@Brittiona LewisYes we offer complete lifecycle:- Rehab-Tenant placement - rent collection I do the construction and my wife does the property management

You can do this two ways 1) spend 30 minutes and download that spreadsheet that does a simplified life cycle cost analysis and gives a per year sumOr 2) be conservative and call it 10-20 percent put it in the bank and spend you time enjoying life or finding more deals.

Through the life cycle of the syndication, rental income from the property pays all debt service.

This is what you generally get with a property manager:- a licensed professional who completes ongoing education and stays on top of new laws- Someone to handle all maintenance requests, complaints, tenant-tenant issues, and communications- A routine inspection ensuring the building is up to code- A quarterly report showing the life cycle of all assets, roof, bricks, windows, a/c, heating, etc.- Troubleshooting any maintenance issues or building upkeep, gathering estimates from multiple vendors when there is a larger repair to be made- Following up on all repairs & maintenance that was done to ensure it was handled properly