I want to use real estate, but not so much to retire early because I plan on mangaging properties to be my job. I also want to focus on SFR in a specific neighborhood because RE isn’t just an investment for me but an interest and hobby as well. There are a bunch of mid century fixeruppers in this neighborhood which is up and coming and I’ve been renting out a property here for 5 years to different professionals who work nearby. I haven’t ever had to advertise.
Everyone has their niche. I have no interest in multi family homes, even though they can earn more, because of the competition between investors, they can be more costly to buy and maintain, and in my area affordable MF’s are in not so good neighborhoods, and since I will be managing, having tenants I am comfortable communicating with is important to me, even more so than maximum return. But there are plenty of people who are successful in it.
My plan is to have moderate sfr with moderate rents, in an area that has most of a chance increasing in value, and I’ll get my payday when I sell in the future.
Also, I have passed over some management duties to tenants. After I speak with a service provider, I refer them to the tenants who will schedule and meet them (the service providers speak with me via phone when they are at the property), and they manage the yard work, and minor repairs and replacements. The rent is good for the area and it’s convenient to local businesses, so so far they’ve all been gracious about being pseudo property managers. I also find it instills in them a respect for and pride in the property. I let them paint whatever colors they like and encourage them to make the yard theirs (within reason, and checking with me for anything more than minor landscaping). My current tenants put in a small sand leveled patio themselves, and wood shelving in the kitchen (with permission), and I had it checked to make sure it was done correctly.
These particular tenants are handy and enjoy yardwork...they’ve made huge improvements, so I got them a $50 gift card for their one year “houseavversary” knowing it would go towards the value and upkeep. I like having a good and involved relationship with my tenants, which I wouldn’t get with a management property.