As a 30 year real estate investor, I say match what you want to accomplish to what you purchase. If you want long term growth with the offset of taxes through depreciation, look at rentals. If you want fast cash and you have a good knowledge of your real estate market, consider fix-n-flips. If you are hands off and you are looking for consistent returns, but not homeruns, then REITs are a good choice. As far as type of real estate, look at what is needed. If there is plenty of office space, then don't add more. If an area is rapidly growing and there is a lack of businesses, invest in commercial. Sorry for the long reply, but I think the most important question is what do you want to accomplish and then align what you do with the goal.