Investing in real estate is like learning a new language. It’s both exciting and intimidating. You’re constantly discovering the vocabulary, risks, challenges and rewards. If you have what it takes, though, you’re in for some compelling benefits—including tax benefits, passive income, and asset diversification, to name a few.

Here are three popular property investment options. Based on your personal goals and budget, you can select the most appropriate option.

1.      Long-term rentals

You’re sipping cocktails on a tropical beach somewhere, the warm breeze flowing through your hair. As you walk toward your overwater bungalow, you sigh with satisfaction; you’ve already earned the cash to pay for this indulgent getaway. In fact, you keep on earning it every day. You, my friend, are a landlord. And owning a long-term rental property nets you consistent passive income…as well as a slew of tax benefits.

Enterprising real estate investors who aspire to become landlords can follow any of these long-term rental investment strategies:

• The BRRRR strategy: “Buy, renovate, rent, refinance, repeat” (or BRRRR) enables you to finance 100% of your property investments. Purhcase a property in dire need of rehabilitation and renovation, make it pretty, rent it out to suitable tenants, and use a cash-out refinance to buy another rental property. Voilà! And repeat the process.
• Turnkey rental properties: If the idea of overseeing renovation projects and hiring contractors doesn’t excite you, consider turnkey rental projects. These properties are either in rent-ready condition or already have tenants living in them. Of course, you’ll be paying more than you would for a run-down property. But with this method, you won’t have to worry about bringing the property up to code or making it functional. You should, however, expect to face some stiff competition in turnkey investing since it’s a more desirable scenario.
• House hacking: Another great long-term rental property investment option: you can buy a multifamily property consisting of three to four units, move into one, and rent out the others. It’s an incredible way to ease into real estate investment if you’re a novice. Since properties with four (or fewer) units are considered to be residential, you’ll benefit from a standard homebuyer’s mortgage—using an FHA loan, for example—and can make a down payment as low as 3.5%. Contrast that with an investment property, where a 20% down payment and higher mortgage rates are typical.

2. Vacation rentals

Despite so many options available, long-term rentals may not be for everyone. If you’re not in it for the long haul, consider short-term rentals or vacation rentals.

Websites such as VRBO and Airbnb offer you the opportunity to promote and rent out your vacation homes (or an existing rental property) to vacationers or corporate guests. Of course, every investment option has pros and cons.

The chief benefit of vacation rentals: you can charge more money on a per-night basis. However, the occupancy rates may remain comparatively low. You may face other problems with evictions, nonpaying guests, paying for utilities, furnishing the units, or cleaning/damage repair between stays.

Before opting for this property investment strategy to build wealth, make sure you’re accounting for realistic occupancy rates, seasonal rents, management fees, cleaning costs, and vacancy rates.

3.      Flix-and-flip homes

This certainly is the most popular property investment method, thanks to TV shows. Real estate investment expert Jordan Terrell spoke about it in an interview with HomeLight.

“Flipping is a great way to make significant cash,” Terrell explained. “Depending on your investment goals—as in, whether you’re aiming for earnings now versus taking a more long-term approach— flipping homes can mean pocketing profits in a matter of weeks or months instead of years,” he said.

Obviously, it’s not for the faint of heart. You need to have a robust budget in order to make upgrades and a trusted contractor by your side to complete the projects on time.

There you have it; three viable options for your journey into real estate investing. Many others have trodden down each of these paths, and you can learn from their smart choices and also from their mistakes. Knowing your own personal goals to start with will be key. It’ll make popping the champagne cork all the more meaningful once your first deal is signed. Happy investing!