Summary: Active investing is the acquisition of a single-family residence (SFR) with the goal of utilizing it as a rental property and turning over the ongoing management to a third-party property management company
Active real estate investing requires a great deal of personal real estate knowledge and hands-on management or delegation of responsibilities. Active investors can work as real estate investors part-time or full-time, depending on the nature and number of their investment properties. They usually invest in properties with only one or a few owners, so they bear quite a bit of responsibility in ensuring the success of a property. Because of this, active real estate investors need analytical and negotiation skills to improve their cap rate and overall return on investment. They also need a substantial amount of time.