You Found an Investment Property – Now What? 3 Real Estate Strategies to Know
Congratulations – you did it! You’ve just found the perfect investment property. Maybe it’s your very first deal. Maybe you’ve done a couple flips and are hungry to scale. Either way, you’re about to hold the keys to a major wealth-building opportunity. But as any seasoned investor will tell you, buying the property is just the beginning.
What comes next can shape your long-term success. The real estate strategy you choose – whether it’s flipping for quick profits, renting for steady income, or something in between – determines everything from your cash flow to your stress levels. In this guide, we’ll break down the most common real estate investing strategies: flips, rentals, BRRRR, house hacking, and wholesaling. You’ll learn which one matches your goals, how to scale each approach, and what tools can help on your journey.
Whether you’re just getting started or looking to level up, this is your roadmap to turning one investment into many.
Start with Strategy: What’s Your Goal?
Before you swing a hammer or list a rental, take a moment to clarify your goals. Every real estate investing strategy comes with its own timelines, risks, and rewards, and aligning with the right one depends on what you want out of this investment.
Ask yourself: are you aiming for short-term profits or long-term wealth? Do you want consistent cash flow every month, or are you more interested in equity growth over time? How involved do you want to be – are you open to project managing a renovation, or would you prefer a more passive approach?
Your time, capital, and risk tolerance all factor in. Some strategies, like flipping or BRRRR, require more capital and active involvement. Others, like long-term rentals, may suit those with limited resources or a desire to start slow and scale.
Flipping: Fast Profits, Bigger Risks
Flipping is one of the most well-known real estate investing strategies – and for good reason. When done right, it can deliver significant profits in a short amount of time. The basic idea is simple: buy low, renovate smart, sell high. But in practice, flips require tight project management, sharp budgeting, and a deep understanding of your local market.
This strategy is ideal for investors who have a solid grasp of rehab costs, access to capital (or creative financing), and the ability to move quickly. It works best in markets where demand is strong and comps support a profitable resale price.
The upside? If you can stick to your budget and timeline, you could walk away with a solid return on each deal. The downside? Flipping is inherently risky. Unexpected repairs, permitting delays, contractor issues, or market shifts can eat into profits or leave you in the red.
To scale as a flipper, it’s essential to systematize your approach: build a reliable team of contractors, use data to analyze deals upfront, and refine your renovation process. The more repeatable your flips become, the easier it is to take on multiple projects – or larger ones – with confidence.
One way investors are streamlining their flipping process is by using the Backflip App. Backflip helps you analyze deals quickly and accurately, providing essential data like After-Repair Value (ARV), As-Is Value, high-quality comps, market trends, potential profits and more. It will even help you determine if a property is better off as a flip or a rental.
As a Backflip member, you’ll also have access to our flexible funding options, so you can move faster on great opportunities without the delays of traditional financing. Having a powerful analysis and funding tool in your pocket can mean the difference between winning a competitive deal or missing out.
Renting: Build Long-Term Wealth
For investors who want stability, cash flow, and long-term wealth, buy-and-hold rentals are a time-tested path. With this real estate investing strategy, you purchase a property, rent it out to tenants, and earn monthly income while your asset appreciates over time.
This approach is ideal for investors looking for steady returns, strong tax advantages, and the potential for passive income. Rentals can be especially powerful when managed over the long term, with cash flow increasing as rents rise and mortgages get paid down.
The pros of renting are clear: you build equity, collect monthly income, and benefit from appreciation and tax deductions like depreciation. However, being a landlord comes with responsibilities—from managing repairs and handling tenant issues to navigating turnovers and lease renewals.
When it comes to rentals, investors have two primary paths: short-term rentals (STRs) or long-term rentals (LTRs). Long-term rentals involve leasing the property to a tenant for a fixed term—usually 12 months or more. This route offers predictable, steady income with fewer turnovers and less hands-on management once a good tenant is secured. Short-term rentals, on the other hand, involve renting the property out for shorter stays—often through platforms like Airbnb or Vrbo.
STRs can generate significantly higher monthly income, but they also come with more frequent turnovers, greater operational demands, and sometimes higher vacancy risks. Additionally, STRs are heavily regulated in certain cities, so it’s important to research local ordinances before committing.
Choosing between short-term and long-term rentals depends on your goals: if you prefer stability and passive management, LTRs might be the better fit; if you’re willing to take on more active management for the potential of higher cash flow, STRs could be a rewarding strategy.
That’s where TurboTenant can help. Designed for landlords and property owners, TurboTenant is a property management software that simplifies the rental process by giving you tools to list properties, screen tenants, collect rent, and manage leases – all in one place. It’s especially useful for self-managing landlords who want professional results without the overhead of hiring a property manager.
If you’re planning to grow your rental portfolio, consistency and organization are key. Treat your rentals like a business, use tools like TurboTenant to streamline operations, and focus on properties in markets with strong rental demand.
The BRRRR Method: Recycle Your Capital
The BRRRR strategy – Buy, Rehab, Rent, Refinance, Repeat – has become a favorite among investors who want to scale fast without tying up all their capital. It combines elements of flipping and renting, with a twist: after renovating and renting the property, you refinance it to pull your original investment back out and use it on your next deal.
This strategy is ideal for experienced or growth-minded investors who understand both renovation and rental management, and who have strong relationships with lenders. The BRRRR method allows you to build equity, generate cash flow, and reinvest your original funds over and over again.
The biggest advantage? Velocity. With the right deals and smart execution, you can grow your portfolio significantly faster than with traditional buy-and-hold. But it’s not without challenges. Appraisals may come in low, refinance rates may change, and if the rehab or lease-up phase doesn’t go to plan, your timeline could stretch (and cost more) than expected.
To succeed with BRRRR, precision matters. Focus on buying below market value, budgeting accurately, and getting tenants in place quickly. This is one of the more advanced real estate investing strategies, but with the right tools, it can supercharge your portfolio growth.
Diversify and Scale Smart
As you gain experience, you’ll likely discover that one strategy doesn’t have to limit you. Many successful investors blend flips, rentals, and BRRRRs to create diversified income streams and long-term growth. Diversification allows you to balance short-term gains with long-term stability, depending on what the market – and your goals – demand.
No matter which real estate investing strategies you pursue, your success will ultimately depend on your systems and your team. Surround yourself with great contractors, lenders, agents, and property managers. Use modern tools like Backflip and TurboTenant to streamline your operations and keep your focus on scaling your business.
The right platform can be a massive unlock for solo investors and small teams, helping you operate more like a business and less like a hobbyist.
What’s Next?
Buying an investment property is a huge milestone, whether it’s your first or your tenth – but what you do next determines your path as a real estate investor. Whether you’re flipping, renting, or BRRRRing, the key is to pick a strategy that best fits your goals, build easy, repeatable systems, and stay focused on the long game.
With the right real estate investing strategy, tools, and mindset, one property can transform your life and get you another step closer to achieving financial freedom.
And when you’re ready to fund your deals faster and easier, the Backflip App has your back. With competitive funding options and a network of thousands of real estate investors, Backflip helps you move from “just closed” to “what’s next” – smarter and faster.
