Real estate investing can sound complicated, but at its core, it’s simply the process of buying, improving, and holding or selling property to build wealth. Investors use different strategies depending on their goals, timeline, and risk tolerance. Whether you want fast profits, passive income, or long-term wealth, understanding the major strategies is the first step.
This guide breaks down the most common real estate investing strategies in simple terms, along with why investors use them and what beginners should know.
Strategies for Real Estate Investing
To learn the proper way to conduct real estate investing, it is important to know the strategies. However, some different platforms can also help alleviate the pressure, and it is important to read up on material such as Dealmachine vs Propstream vs REsimpli.
Buy and Hold Investing
Buy and hold is one of the most popular long-term strategies. Investors purchase a property and rent it out for monthly cash flow while the property appreciates over time.
Why investors use it:
• Steady passive income
• Strong long-term wealth building
• Tax benefits through depreciation and expenses
Perfect for: People looking to build wealth slowly and consistently through rentals.
Fix and Flip
Fix and flip investors buy distressed or outdated properties, renovate them, and sell them for a profit. The goal is to generate quick returns in a short period.
Why investors use it:
• Fast profits
• Lower long-term risk since properties are sold quickly
• Great for investors with construction or project management skills
Perfect for: Those who enjoy renovations and want quicker returns instead of long-term rental income.
Wholesaling
Wholesaling is a strategy where investors find discounted properties, put them under contract, and assign the contract to another buyer—without buying the property themselves.
Wholesaling for investors also involves different types of wholesaling, and it is important to know about them.
Why investors use it:
• Very low upfront capital needed
• No renovations required
• Quick turnaround
Perfect for: Beginners wanting to enter real estate with minimal risk and investment.
Reverse Wholesaling
In reverse wholesaling, investors first build a list of cash buyers and then find properties that match what those buyers want.
Why investors use it:
• Less risk because a buyer is secured first
• Faster closings
• Higher closing ratios
Perfect for: Investors who want predictable deal flow and strong buyer demand.
House Hacking
House hacking allows investors to live in one part of a property while renting out the rest—like renting rooms, a basement unit, or additional apartments in a duplex or triplex.
Why investors use it:
• Significantly reduces or eliminates housing expenses
• Easier financing through owner-occupied loans
• Great way to start building equity
Perfect for: First-time investors who want to live for free while building wealth.
BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
The BRRRR strategy combines flipping and buy-and-hold. An investor buys a distressed property, renovates it, rents it out, refinances to pull equity out, and repeats the cycle.
Why investors use it:
• Ability to recycle the same capital
• Build a rental portfolio faster
• Increase total long-term cash flow
Perfect for: Investors with some experience or access to renovation funds.
Short-Term Rentals (Airbnb & Vacation Rentals)
Short-term rentals involve renting out a property on nightly or weekly platforms.
Why investors use it:
• Higher income potential than traditional rentals
• Flexible personal use of the property
• Strong demand in tourist or business markets
Perfect for: Investors in high-demand locations who can manage or outsource frequent guest turnover.
Commercial Real Estate
Commercial real estate includes office buildings, retail centers, warehouses, and multifamily properties with five or more units.
Why investors use it:
• Longer leases provide predictable income
• Higher overall returns
• Professional tenants and fewer maintenance calls
Perfect for: More experienced investors or those with higher capital availability.
Choosing the Right Strategy
The best strategy depends on your time, budget, skills, and risk profile. Here are quick guidelines:
Choose buy and hold if: You want long-term wealth and passive income.
Choose fix and flip if: You want larger but faster profits.
Choose wholesaling if: You want to start with low capital.
Choose BRRRR if: You want to scale a rental portfolio quickly.
Choose short-term rentals if: You want higher cash flow and don’t mind active management.
Choose commercial if: You’re ready for bigger opportunities and can handle larger investments.
How Investors Stay Competitive
No matter which strategy y. ou choose, successful investors rely on:
• Accurate property data
• Consistent lead generation
• Strong financial analysis
• Organized workflows and follow-ups
Modern tools like REsimpli help investors manage leads, track marketing, run comps, and automate follow-ups—making each strategy easier and more scalable.
