Best Real Estate Investments In The US For Beginners

When it comes to building long-term wealth, some of the best real estate investments in the US continue to outperform more volatile options like stocks or crypto. While there are countless ways to invest, real estate remains a time-tested path—especially for those looking to grow stable, scalable income over time. However, not all properties are created equal. For anyone exploring real estate investing for beginners, understanding the best types of real estate investments is key, and that’s where single-family homes shine. They’re accessible, flexible, and ideal for those just getting started.

In this guide, we’ll walk through why single-family home investing is the smartest way to break into the industry—and how new investors can use a proven strategy to scale from zero to long-term success. We’ll cover everything you need to know about the best real estate investments in the US, starting with the following:

• Why Single-Family Homes Are the Best Real Estate Investments in the US
• Understanding the Different Types of Real Estate Investments in the US
• The Evolution of the Real Estate Investor
• Key Factors to Consider When Choosing the Best Real Estate Investments
• Where to Find the Best Real Estate Investments in the US (By Strategy)
• How to Finance Your Best Real Estate Investments
• The Risks and Rewards of Real Estate Investing
• Common Mistakes New Investors Make (And How to Avoid Them)
• Learn Every Stage of the Investor Evolution Inside the Ultimate Investor Program

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

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Read Also: 9 Best Real Estate Investments For Beginners In 2025

Why Single-Family Homes Are the Best Real Estate Investments in the US

When people ask about the best real estate investments in the US, the answer might be simpler than they think: single-family homes. Whether you’re a brand-new investor or someone with a few deals under your belt, single-family homes offer the perfect balance of accessibility, profitability, and long-term potential.

So, why do they stand out?

• Lower Cost of Entry
• High Demand Nationwide
• Financing Is Easier to Secure
• Solid Appreciation & Resale Value
• Versatility Across All Strategies

Lower Cost of Entry

Compared to multifamily or commercial properties, single-family homes typically require a much smaller upfront investment. According to the Federal Reserve Bank of St. Louis, the median sales price of a new single-family home in the U.S. is approximately $414,500—far more attainable than their larger commercial counterparts. This makes single-family home investing ideal for beginners looking to get their foot in the door without massive capital.

High Demand Nationwide

Historically, demand for single-family homes has remained strong across the U.S.—and that’s a huge advantage for investors. When there’s consistent demand, it’s easier to sell or rent out properties quickly, which means fewer holding costs and stronger returns.

According to U.S. Census Bureau data, in Q4 of 2023, the national homeownership rate was 65.7%, showing that single-family homes remain the preferred living arrangement for most Americans. At the same time, rental demand for these homes has surged—especially in suburban and Sun Belt markets—making them attractive whether you’re flipping or holding long-term.

This kind of steady demand offers stability in an otherwise cyclical industry, and it’s a big reason why investing in single-family homes continues to be a winning strategy for both new and seasoned real estate investors.

Financing Is Easier to Secure

One of the biggest advantages of single-family home investing is how accessible financing can be—especially compared to commercial or multifamily properties. Banks and mortgage lenders are generally more comfortable underwriting loans for single-family homes because they're a familiar asset with strong market demand. Plus, government-backed options like Fannie Mae and Freddie Mac offer conventional financing with competitive rates, even for investment properties.

For new investors, this means you don’t need to come in with all cash. You can leverage financing to acquire your first property with as little as 15–20% down (or less), giving you a chance to enter the market, gain experience, and scale from there. It’s one of the main reasons why single-family homes are often considered one of the best real estate investment strategies for beginners.

Read Also: Real Estate Financing: The 6 Best Funding Options For Investors

Solid Appreciation & Resale Value

Over time, investing in single-family homes has proven to be a reliable path to property appreciation and resale profits. Unlike some niche or commercial assets that can fluctuate heavily, single-family homes tend to follow steady, long-term growth trends. According to the Federal Housing Finance Agency (FHFA), the U.S. House Price Index has increased by over 50% in the last decade, reflecting a strong upward trajectory in home values.

For investors, this means two things: you’re not just earning cash flow—you’re also building equity. Whether you’re flipping for short-term profit or holding for the long haul, the appreciation potential of single-family homes adds a layer of wealth-building that makes them one of the best types of real estate investments available today. And because there’s always strong end-user demand, resale is often quicker and more predictable than with other property types.

Versatility Across All Strategies

One of the biggest reasons single-family homes stand out as the best real estate investments in the US is their unmatched versatility. Whether you're brand new or a seasoned pro, single-family homes can be used to execute nearly every major investment strategy. You can wholesale them without owning the property, flip them for quick, active income, or hold them as rentals for long-term cash flow and appreciation.

This flexibility is what makes single-family home investing so powerful. You can pivot between strategies based on market conditions, personal goals, or available capital. For example, many new investors start by wholesaling to build cash reserves, then use those funds to flip a home, and eventually transition into building a rental portfolio that generates passive income. Few asset types offer that kind of adaptability—which is why single-family homes remain one of the best types of real estate investments, hands down.

Understanding the Different Types of Real Estate Investments in the US

When it comes to building wealth through real estate, there’s no shortage of options. From commercial buildings to raw land, the real estate investment opportunities in the US are diverse and can serve different goals depending on your experience level, risk tolerance, and available capital. But for beginners, not all investment types are created equal.

Let’s break down a few of the most common:

• Commercial Real Estate Investing involves office buildings, retail centers, and industrial properties. While the income potential can be high, commercial deals are usually capital-intensive and carry more complexity, making them less beginner-friendly.
• Multifamily Real Estate Investing includes duplexes, triplexes, and apartment buildings. These properties can produce strong cash flow but often come with more management responsibilities, higher price points, and greater competition.
• Land Investing is a long-game strategy. It requires careful zoning knowledge and often produces little to no income upfront, which can be challenging for those just starting out.
• REITs (Real Estate Investment Trusts) offer a way to invest passively in real estate through the stock market, but they don’t provide the control, tax benefits, or hands-on experience that direct ownership does.
• Short-Term Rentals like Airbnb properties can be lucrative in the right market but come with higher risk, inconsistent income, and more active management—especially in highly regulated cities.

So where does that leave us?

For new investors looking to get started with confidence, single-family homes remain the best real estate investments in the US. They’re simple to understand, relatively affordable, and can be used across multiple strategies. Out of all the best types of real estate investments, single-family homes offer the right mix of accessibility, flexibility, and scalability to help beginners take action and grow.

The Evolution of the Real Estate Investor

Every successful investor starts somewhere—but the smartest ones follow a proven path that allows them to grow over time. At Real Estate Skills, we call this journey The Evolution of the Real Estate Investor—a 3-phase framework that starts with wholesaling, progresses to house flipping, and ultimately leads to building a portfolio of buy-and-hold rentals.

Each phase serves a purpose. Wholesaling teaches you how to find and negotiate deals without needing large amounts of capital. Flipping helps you build active income and level up your experience with rehabs and resale. And finally, buy-and-hold rentals allow you to step into long-term wealth-building and passive income.

This evolution isn’t just theory—it’s the exact path we teach in our Ultimate Investor Program, and it’s how countless beginners have built real estate businesses from the ground up.

Step 1: Wholesaling Real Estate

If you're wondering how to start investing in real estate without taking on debt, swinging a hammer, or buying a property—you’re not alone. That’s exactly why so many people start with wholesaling, and it’s often considered one of the best real estate investment strategies for beginners.

Wholesaling real estate is when you find a property being sold below market value, get it under contract, and then assign that contract to a cash buyer for a fee. You’re not buying the house—you’re selling the rights to buy it. It’s quick, requires very little upfront money, and helps you learn the most important skill in real estate: finding good deals.

For anyone exploring real estate wholesaling for beginners, this strategy offers a low-risk way to gain real-world experience, build a buyer’s list, and start generating income—all without the responsibility of property ownership. It’s the perfect entry point for anyone looking for beginner real estate investment strategies that actually work.

Step 2: House Flipping Real Estate

Once you’ve built confidence finding deals, the natural next step is house flipping—buying, renovating, and reselling properties for a profit. It’s a more hands-on strategy than wholesaling, but for many investors, it’s the first time they truly see how real estate can change their financial future.

Flipping is one of the best real estate investment strategies for generating larger lump-sum profits in a short period of time. You’ll need capital (or access to financing), a good team, and a strong understanding of renovation costs and resale value—but the payoff can be worth it. According to ATTOM Data Solutions, the average gross profit on a flip is about $75,000.

For those serious about learning how to start investing in real estate, flipping forces you to level up your deal analysis skills, build relationships with contractors, and understand how to operate on a budget. It’s a crucial phase in the beginner real estate investment strategies playbook, and it sets the stage for long-term wealth through rentals down the line.

Step 3: Buy-and-Hold Rental Properties

The final stage in the evolution of the real estate investor is where real wealth is built: buy-and-hold rental properties. While wholesaling and flipping generate active income, owning rental property is what allows you to create passive income—the kind that comes in every month whether you’re working or not.

But the benefits go far beyond monthly cash flow.

When you own a rental, you’re also gaining from appreciation (as the property value rises over time), tax advantages (like depreciation and write-offs), and the power of leverage. With financing, you can control a $300,000 asset with just a $60,000 down payment—and still earn income and equity gains on the full $300,000. That’s the beauty of real estate: you earn returns on the entire property, not just the money you put in.

For many investors, buy-and-hold is the ultimate goal. It’s a proven strategy to generate steady income, pay down debt using your tenant’s rent, and grow a portfolio that builds wealth for years to come. Out of all the best real estate investment strategies, this one offers the most complete picture of financial freedom, stability, and long-term growth.

Read Also: How To Buy Your First Rental Property: A Step By Step Guide

Key Factors to Consider When Choosing the Best Real Estate Investments

If you're new to real estate, it's easy to get overwhelmed by the options. But no matter your strategy, every good real estate investment plan starts with evaluating a few key fundamentals. Knowing how to analyze a deal will give you confidence and help you avoid costly mistakes—especially early on.

Here are the core factors to consider:

• Cash Flow: This is the money left over after all expenses are paid. Positive cash flow means your investment is putting money in your pocket each month—not taking it out.
• Return on Investment (ROI): ROI helps you measure how hard your money is working. It compares your net profit to your total investment and helps you weigh one opportunity against another.
• Appreciation: Over time, properties often increase in value. Appreciation builds long-term equity, and in the right market, it can significantly boost your net worth.
• Risk: No investment is without risk, but the goal is to minimize it. Look at vacancy rates, neighborhood trends, and local laws before committing.
• Location & Demand: Good markets attract tenants, buyers, and appreciation. High-demand areas usually make for safer and more profitable investments.

So, what’s the takeaway for real estate investing for beginners?

You want investments that hit as many of these boxes as possible—and single-family homes tend to do just that. They offer strong cash flow potential, steady appreciation, lower risk, and plenty of demand. That’s why, out of all the best real estate investments in the US, single-family homes continue to stand out—especially as the best real estate investments for beginners looking to get started the right way.

Where to Find the Best Real Estate Investments in the US (By Strategy)

When it comes to choosing where to invest in real estate in the US, not every market is created equal. The best cities for wholesaling may not be ideal for flipping, and rental markets can vary wildly depending on local demand, pricing, and population trends.

Below, we’ve broken down some of the best cities for real estate investing—categorized by strategy—using data like home price trends, job growth, population changes, and rental demand. These aren’t just hot markets—they’re strategic entry points for different types of investors.

Best Places to Wholesale Real Estate in the US

If you’re just getting started with wholesaling, your success often depends on finding the right market. These cities offer a mix of affordable properties, strong investor demand, and motivated sellers—making them ideal for anyone looking to get into real estate wholesaling for beginners.

• Memphis, TN: Memphis consistently ranks as one of the most affordable housing markets in the country, with median home prices under $200,000, according to Redfin. The city's high rental demand, low property costs, and abundance of motivated sellers make it perfect for wholesalers targeting cash buyers looking for deals.
• Cleveland, OH: Cleveland’s housing market is loaded with older properties that need work, which is ideal for wholesaling. According to Zillow, the median home value in Cleveland is around $125,000, and the city is experiencing increased investor interest due to its revitalization efforts and affordable inventory.
• Indianapolis, IN: Indianapolis has a strong rental market, affordable housing (with median prices around $230,000), and a growing population, according to the U.S. Census Bureau. This makes it easy for wholesalers to find distressed properties and match them with out-of-state investors seeking stable rental returns.

These three cities offer some of the best real estate investment opportunities in the US for wholesalers due to low acquisition costs and high investor demand—making them clear standouts among the best places to invest in real estate in the US.

Best Cities to Flip Houses in the US

Flipping works best in areas with strong resale demand, rising prices, and room for renovation-based profits. These cities offer the right combination of appreciation potential, buyer activity, and inventory that make them hotspots for successful flips.

• Phoenix, AZ: Phoenix has become a house flipper’s paradise, thanks to rapid population growth, high resale demand, and solid profit margins. ATTOM’s 2023 U.S. Home Flipping Report named Phoenix as one of the top metros for average gross flipping ROI.
• Tampa, FL: Tampa consistently ranks among the best cities for real estate investing, especially for flipping. According to Realtor.com, Tampa’s housing market is expected to see continued appreciation, and flippers benefit from strong buyer demand and limited inventory.
• Charlotte, NC: Charlotte’s economy is booming, with job growth outpacing the national average. Zillow forecasts steady price appreciation, and with median home prices under $400,000, Charlotte offers great upside for flippers who know how to renovate strategically.

If you’re looking for where to invest in real estate in the US for short-term gains, these three markets give you the right balance of price, demand, and growth.

Best Markets to Own Rental Properties in the US

Long-term rental investing is all about steady cash flow, stable tenants, and long-term appreciation. These markets have proven to deliver reliable returns for buy-and-hold investors and are among the most landlord-friendly and growth-oriented cities in the country.

• Huntsville, AL: Huntsville has seen massive growth, driven by the tech and aerospace industries. According to the U.S. News & World Report, it’s one of the fastest-growing metro areas in the South, and the combination of rising rents and affordable home prices makes it a rental goldmine.
• Kansas City, MO: Kansas City offers stable population growth, low vacancy rates, and median home prices around $275,000, per Redfin. The city has strong rental yields and is frequently named one of the best cities for real estate investing for long-term cash flow.
• San Antonio, TX: San Antonio’s population continues to rise, and it’s part of the booming Texas triangle. According to RentCafe, the city has seen consistent year-over-year rent growth, and landlords benefit from a healthy job market and landlord-friendly regulations.

These cities provide some of the strongest real estate investment opportunities in the US for those looking to build wealth through rentals. If you’re focused on passive income, they’re among the best places to invest in real estate in the US right now.

How to Finance Your Best Real Estate Investments

One of the biggest misconceptions about real estate is that you need a lot of money to get started. In reality, many of the best real estate investments in the US—especially investing in single-family homes—can be funded using other people’s money through a variety of financing options. The key is understanding what tools are available and how to use them strategically.

Here are some of the most common ways new investors fund their first deals:

• Conventional Loans: These are traditional bank or mortgage loans, often used for long-term rental properties. While they require decent credit and a down payment, they offer some of the best long-term rates and terms.
• Hard Money Loans: These are short-term, high-interest loans typically used for fix-and-flip projects. They’re asset-based and ideal if you need fast funding and have a solid deal lined up.
• Private Money: Private lenders are individuals (not institutions) who are willing to loan money in exchange for a return. This is a great option for beginners who have a network of family, friends, or local investors willing to back their deals.
• Seller Financing: In this arrangement, the seller becomes the lender, allowing you to pay for the property over time. It’s one of the best real estate investment strategies when you can’t qualify for a traditional loan but have a motivated seller willing to work with you.
• Creative Financing: Strategies like subject-to, lease options, or hybrid structures can help you control properties with little or no money down. These require more knowledge but open the door to unique real estate investment opportunities in the US that most people overlook.

For those seeking the best real estate investments for beginners, financing doesn’t have to be a barrier. With the right education and support—like what we provide in our Ultimate Investor Program—you can learn how to fund great deals without needing hundreds of thousands of dollars in the bank.

The Risks and Rewards of Real Estate Investing

Let’s be real—real estate isn’t all upside. Like any investment, there are risks involved, and understanding them is just as important as knowing how to spot a good deal. That’s why, at Real Estate Skills, we believe in teaching both sides of the equation. When you're just starting out, transparency builds confidence—and that’s key to making smart moves.

On the risk side, market cycles can shift quickly. Property values don’t always go up, and timing matters. There are also challenges like tenant issues, unexpected repairs, vacancies, and property management headaches. These are all normal parts of the process and important to plan for—especially in real estate investing for beginners.

But here’s the good news: the rewards can be massive.

When you invest in the right properties—especially single-family homes, which remain some of the best real estate investments in the US—you gain access to passive income through real estate, long-term appreciation, and powerful tax benefits. You also get to use leverage, meaning you can control a high-value asset with a relatively small upfront investment. That’s one of the biggest advantages of the best real estate investment strategies—you’re building wealth using the bank’s money and your tenant’s rent.

Ultimately, the goal isn’t to eliminate risk—it’s to understand it, manage it, and keep moving forward. And with the right training and support system behind you, you’ll be better prepared to enjoy the rewards real estate has to offer.

Common Mistakes New Investors Make (And How to Avoid Them)

No matter how excited you are to get started, it’s easy to make costly mistakes when you're new to real estate. We’ve seen it time and time again—investors jump in without the right guidance and end up learning lessons the hard (and expensive) way. That’s why understanding the most common pitfalls is so important, especially in real estate investing for beginners.

Here are a few mistakes to watch out for—and how to avoid them:

• Overpaying for a Property: Without a clear understanding of market value and repair costs, many new investors pay too much. Solution: Always run comps, analyze deals conservatively, and don’t let emotions drive your decisions.
• Underestimating Renovation Budgets: Flipping can go sideways fast if you don’t budget accurately. Solution: Walk properties with contractors early, build in a cushion for surprises, and know the scope of work before closing.
• Poor Market Research: Buying in a declining or low-demand area can make even the best real estate investments for beginners feel like a loss. Solution: Stick to areas with job growth, population increases, and strong rental demand.
• Ignoring Exit Strategies: Some new investors jump into deals without knowing how they’ll make money. Solution: Always have a plan A, B, and C—whether that’s wholesaling, flipping, or holding the property as a rental.
• Trying to Do Everything Alone: This is one of the most common and avoidable mistakes. Solution: Surround yourself with mentors, a trusted team, and a proven system—like what we offer in our Ultimate Investor Program.

Even the best real estate investments in the US can go south if you don’t approach them with the right knowledge. But when you follow the best real estate investment strategies, stay disciplined, and learn from those ahead of you, you set yourself up for long-term success.

Learn Every Stage of the Investor Evolution Inside the Ultimate Investor Program

You’ve just seen how the evolution of the real estate investor works—starting with wholesaling, scaling into flipping, and ultimately building wealth with buy-and-hold rentals. But here’s the truth: you don’t have to figure it all out on your own.

Inside our Ultimate Investor Program, we guide you through every step of that journey with mentorship, hands-on deal training, and real-world strategies that actually work. Whether you're just exploring real estate investing for beginners or you're ready to build a scalable portfolio, our team will help you create a personalized real estate investment plan that fits your goals, budget, and timeline.

We don’t believe in one-size-fits-all education. We believe in systems, support, and helping everyday people make smart moves in real estate. It’s the reason our students consistently find—and close—some of the best real estate investments in the US without wasting time, money, or energy chasing the wrong opportunities.

If you're serious about learning the best real estate investments for beginners and want a proven path forward, this is where it starts.

Let us show you how to turn knowledge into action and build your business the right way—from day one.

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

Best Real Estate Investments in the US: FAQ

Still have questions? You're not alone. Here are some of the most common things new investors ask when looking for the best real estate investments in the US—answered in plain English.

What is the best real estate investment in the US for beginners?

Single-family homes are often considered the best real estate investments for beginners because they’re affordable, easy to understand, and can be used across multiple strategies like wholesaling, flipping, and rentals.

Is real estate investing a good idea for beginners?

Yes—real estate investing for beginners can be incredibly rewarding if you start with the right strategy, market, and support. Education, mentorship, and smart planning make all the difference.

Do I need a lot of money to start investing in real estate?

Not necessarily. With strategies like wholesaling, creative financing, and partnerships, you can start building your real estate investment plan with little upfront capital.

Where is the best place to invest in real estate in the US right now?

Markets like Memphis, Tampa, Huntsville, and Kansas City are among the best places to invest in real estate in the US, offering strong returns, rental demand, and affordable entry points.

What are the safest real estate investment strategies for beginners?

Wholesaling and long-term single-family rentals are considered some of the best real estate investment strategies for beginners because they offer low risk, flexibility, and consistent demand.

Final Thoughts: Start Where You Are, Grow As You Go

Real estate can feel overwhelming at first—but it doesn’t have to be. The truth is, you don’t need to know everything or have hundreds of thousands of dollars to get started. You just need a proven path, a little guidance, and the willingness to take the first step.

The best real estate investments in the US aren’t reserved for the wealthy or experienced—they’re available to anyone willing to learn and take action. Single-family homes offer the perfect entry point, and by following the evolution from wholesaling to flipping to rentals, you can build a real estate business that grows with you.

At Real Estate Skills, we help new and aspiring investors do exactly that—step by step. So if you're ready to stop waiting and start investing, we’re here to help you make it happen.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.