Real estate is always a tremendous income-producing asset, but finding the right property with the perfect blend of price, cash flow, and appreciation can be difficult. That is where value-add real estate comes into play.
Before successful real estate investors buy a value-add property, they ask themselves, does this investment opportunity give me the best balance of risk and reward that correlates with my investment strategy?
Value-add real estate is in the middle of the other investment strategies and right in the sweet spot on the risk and reward spectrum. But it is riskier than the core real estate investing strategy and less risky than the opportunistic investment strategy.