Investment Info:

Single-family residence buy & hold investment in Cottage Grove.

Purchase price: $129,000

Cash invested: $26,000

1979 4/2/2 corner lot with fireplace, shed, trees and large yard
...

You still have several options, depending on if you want to invest directly in individual properties or be a bit more removed:Full-service turnkey investment: Should be mostly passive after you do your due diligence and pick a provider, but don't skimp on your homeworkYou choose which props to purchase, but have no control over tenanting choices, some say in large maintenance expensesAvg cost for solid B/B+ prop in Birmingham (and some other markets but this is the one I have data for, since it's my market) is about $100k per door; you'll pay market price for a tenant-ready, fully rehabbed propertyPartnering with someone who does the on-the-ground stuff while you provide capitalCan be passive if your partner really knows their stuff, but more likely you'd be fairly involved with the choices madeMore control since you call the shots with your partnerYou can pick which markets and price points you're interested inPotential for higher returns (ie buying distressed and then forcing equity through renovation) if your partner is experienced and can execute consistentlyInvesting in a syndicateMany investors pool funds to invest in much bigger projects like commercial space or large MFRs, or in larger portfoliosVery passive, investors are not responsible for project vetting or management, but you have no controlMay have higher bar for entry, some syndicates require large investments and you'll need to have liquid cash on handBuying shares in a REITLike an ETF but comprised of real estate investmentsVery passive, but no control over which assets are held in the fundHighly liquid, easy to buy and trade, lower bar for entryEverything is a trade-off between passivity and control, time and money.

Just choose your words carefully when you approach the lender .

I choose both (or an opportunity to achieve both) or I don't play.

Far better is to choose a different tax-free option: not selling.

You've got to have plenty of deals in the pipe line to offset those taxes and cover reno costs.Some folks in your situation choose to continue their path of buy and hold investing. 

I've had heaters go out in the dead of winter, floods during heavy rain, bed bugs, fires, squatters and a few more. 

Please click on the links, give them a read, and share your thoughts in the comments.First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bpThe second is a post that will help get you focused with your real estate investing goals:https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciatedThe last one is a post that will help you choose an “investor friendly” real estate agent.There are many agents out there, but it’s important to choose the right one.https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agentI love answering questions if you have any!

It is a 3 bed 3ba two story single family that is on short sale.

@Angela Salvant, any agent will tell you that 3-bed homes are the most desirable houses.