You are correct in that property Investors essentially fall into one of two buckets, Short-Term and Long-Term Investors. The difference may seem pretty self-explanatory however, the strategies that they implement can differ greatly.
Typically, Investors seeking short-term capital growth are the ‘quick flippers’, who will look to turn a profit on a property within a short period of time, normally less than 18 months. Generally during this time, they will look to make improvements to the home to increase its capital value to then sell it for a profit. The best property investment locations to do this are where you can purchase a property at a price under the median property value for the area and increase that value to either reach the median or surpass it through increasing its capital value.
Investors seeking long-term capital growth are in for the long haul and will look to generate a profit on a property over a period that normally spans more than 5 years. Long-Term Property Investors will generaly conduct an extensive research into the future potential of the location they are investing in, paying a lot of attention to a number of fundamental variables that are well described in one of the blog posts here.