What is the best real estate investing strategy for 2023?
Should you try wholesaling? Or invest in Airbnbs? How about fix-and-flips? Turnkey rentals? Or maybe a multifamily syndication?
On this episode of Financial Freedom with Real Estate Investing, Garrett takes on the role of moderator, and we sit down with some big hitters in the industry to debate the pros and cons of each approach.
Kyle Stanley of The Fearless Investor explains why he likes short-term rentals and Hayato Hori of RocketOffr shares the benefits of wholesaling.
I describe the advantages of apartment building investing, Chris Clothier of REI Nation discusses why he prefers turnkeys, and Henry Washington of BiggerPockets explores the opportunities in fix-and-flips in 2023.
Listen in for insight on the risks and challenges associated with each kind of real estate investing and learn which strategy is the quickest path to financial freedom!
Key Takeaways
Why Kyle likes the short-term rental strategy for 2023
- Accelerated cost segregation with STR loophole
- Accelerated cashflow and increased property value
- Easier to maintain than long-term rentals
Why Hayato likes wholesaling as a strategy for 2023
- Many institutional and retail investors still looking to buy
- Can get in and out of deals quickly with low risk
- Requires little capital to get started, can quit W-2 quickly
Why I like multifamily syndications as a strategy for 2023
- #1 way to become financially free in 12 months or less
- Don’t need experience, can use other people’s money
- Much opportunity to buy from poor operators right now
- Performs well in down market
Why Chris likes turnkey houses as a strategy for 2023
- Passive investment in high-demand physical asset
- Invest anywhere in world and manage virtually
- Build long-term relationships with investors
Why Henry likes fix-and-flips as a strategy for 2023
- Opportunities to buy at discount, more deal flow
- Affordable housing has positive impact on community
The risks and challenges associated with fix-and-flips
- Not passive unless you build large company
- Must repeat process over and over (no cashflow)
The risks and challenges associated with turnkeys
- Success depends on property manager
- Vacancy wipes out profits
- Must scale to generate passive income
The risks and challenges associated with wholesaling
- Much harder to find buyers in current economy
- Requires marketing budget, process for nurturing leads
- Not passive unless you scale (no cashflow)
The risks and challenges associated with short-term rentals
- Need exit strategy in case economy changes
- Can’t win with basic house, property must be unique
The risks and challenges associated with multifamily syndications
- Capital calls when economy changes if too aggressive
- Passive investors not in control, can’t exit without penalty
Connect with Hayato Hori
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Connect with Chris Clothier
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Connect with Henry Washington
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Apartment Investor Network Facebook Group
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Resources
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Financial Freedom with Real Estate Investing by Michael Blank