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The Difference Between Investing and Working in Real Estate

Is that working, or investing? Because the only thing you are putting into it is money. Is that working or investing? If I were to create a very short list of investing strategies, ranging from no work required to maximum amount of work required, I might come up with: Notes/REITs/Syndications > Rental Properties with Property Managers > Landlording > Rehabbing With all of these, what you are looking at is how much time you have to work on the strategy in order to make it work. You buy a turnkey rental property—the rehab is completed by someone else, the tenants are already placed, and property managers manage the property once you own it. On the most basic level you have $20,000 in equity on that property and you are making 3.5 percent more cash flow per month. The BRRRR property requires you to: find a property, negotiate the property, and then rehab the property. Rehabbing the property, at roughly a $30,000 level, may take you 60 hours. On the equity front, that $20,000 profit on the BRRRR required 75 hours of work. On the cash flow front, an added 3.5 percent of cash flow is in exchange for 4.5 hours of increased labor (landlording) over the .5 hours for managing the property manager.