Over the years I have had countless conversations with people who tell me they want to invest in real estate.
When I ask them what they want to buy, the answer is often the same.
“I don’t know.”
They know they want to build wealth. They know they want passive income. They know they want to own investment property someday.
What they don’t know is what they are actually looking for.
That uncertainty causes many people to do nothing at all.
One of the concepts that has helped me over the years is something I call an Investment Avatar. As a Realtor having worked with many investors for the past 30 years I get to know what types of investment interest different types of investors. I often ask they why they choose that type of property over another. One day I got to thinking that once you know, you know. If you would always buy a certain type of property like my investors were didn’t mean I had to do the same. I had to figure out what types of investment properties I wanted. I began making a list of different types and scenarios which lead me into my current Investment Avatar strategy when it comes to looking for the right one.
An Avatar is simply a specific type of property that fits your investment goals. When you find one that matches your avatar, you take a serious look at it. Sometimes you buy it.
Without an Avatar, every property looks different and every opportunity becomes confusing.
With an Avatar, you know exactly what you are looking for.
When I first started investing, my avatar was simple.
I wanted a single-family home that would rent for enough money to cover the mortgage payment.
That was it.
I wasn’t worried about maximizing cash flow. I wasn’t calculating complicated returns. I wasn’t looking for development opportunities.
I simply wanted a property that someone else would help pay for while I built equity over time.
Looking back, it wasn’t a perfect strategy, but it got me started.
And getting started is often the hardest part.
As I gained experience, my avatar changed.
I stopped looking at properties that simply covered the payment.
I wanted a property that produced monthly profit.
I still appreciated the benefits of debt reduction, appreciation, and tax advantages, but I wanted cash flow as well.
The property had to perform from day one.
That adjustment changed the opportunities I pursued and the deals I passed on.
Over time, I developed several different avatars.
Today, if I find one of them, I pay attention.
One avatar might be a single-family home in an area I believe is poised for growth. If population, jobs, and development are moving into an area, appreciation can become a powerful part of the return.
Another Avatar might be a duplex or multifamily property that produces a specific level of income after all expenses are paid.
Not gross income.
Not rent collected.
Actual cash flow after expenses.
I also like properties that have hidden opportunities.
A single-family home with room for an accessory dwelling unit can create an additional income stream.
A property that qualifies for a lot split may create value that wasn’t obvious when I first purchased it.
Sometimes the best investment isn’t the property itself. It’s the opportunity the property creates.
In the past, I have purchased land, short platted it into lots, and sold the lots individually.
Those projects produced some of the better returns I have experienced.
Today, my avatar has evolved again.
I tend to favor newer homes and newer construction.
Why?
Generally speaking, they require less maintenance, attract quality tenants, and often produce fewer surprise expenses.
Every investor’s avatar will be different.
What works for me may not work for you.
Some investors want maximum cash flow.
Some want appreciation.
Some want development opportunities.
Some want long-term wealth building.
Some want a combination of all of them.
The important thing is defining what success looks like before you start shopping.
Too many people look for properties before they know what they are trying to accomplish.
That is like going grocery shopping without a list. You wander around hoping something looks good.
Successful investors usually know what they are looking for before they ever see the property.
Even in today’s environment of higher interest rates, I still believe real estate remains one of the best wealth-building tools available.
Real estate can provide cash flow.
It can provide appreciation.
It can provide debt reduction as tenants help pay down loans.
It can provide tax advantages.
And perhaps most importantly, it gives you a tangible asset you can control.
If you have been thinking about investing but aren’t sure where to start, your first step may not be finding a property.
Your first step may be defining your avatar.
What type of property are you looking for?
What return do you need?
What opportunities interest you?
What risks are you comfortable taking?
Once you answer those questions, opportunities become much easier to recognize.
If you would like help creating your Investment Avatar or simply want to discuss how to get started investing in real estate, I would be happy to help.
After nearly 30 years in real estate, I have seen investors build wealth through single-family rentals, duplexes, multifamily properties, land development, lot splits, ADUs, and new construction.
There is no single right path.
The key is finding the path that fits your goals and taking the first step.
The best investment strategy is often the one you actually begin.
Real estate negotiations aren’t one-size-fits-all, and the right strategy can make or break your deal. Whether you’re buying or selling, having an experienced agent guiding the process ensures your offer is built on real market insight—not assumptions.
If you’re planning a move in Tri-Cities and want advice tailored to your situation, our team is here to help you navigate every step with clarity and confidence.
This post is originally published by Ken on his Substack profile. Subscribe to his blog for more tips, strategies, and lessons from 30+ years in real estate.
