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Real Estate Rookie

The 4 Best Types of Rental Properties for New Investors to Buy in 2025

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.81.7K Ratings

🗓️ 26 March 2025

⏱️ 43 minutes

🧾️ Download transcript

Summary

So, you want to invest in real estate…but where should you start? What’s the best type of rental property for a beginner? It’s easy to become overwhelmed by all the options, but in this episode, we’ll provide the four-step framework you need to make the right choice! Welcome back to the Real Estate Rookie podcast! First, we’ll share four steps that will help you pin down the right investing strategy for your budget, lifestyle, and long-term goals. Then, we’ll introduce you to a few of the most beginner-friendly types of rental properties. Are you light on cash? House hacking could help you take down your first investment property with relatively little money out of pocket. Are you looking to scale your real estate portfolio as quickly as possible? The BRRRR method (buy, rehab, rent, refinance, repeat) is one of the fastest ways to build wealth in real estate. Would you prefer your real estate investments to be mostly hands-off? Perhaps a long-term rental is more your speed. Stick around till the end to learn about the three most common mistakes we see new investors make and what YOU must do to avoid them! In This Episode We Cover: The four BEST types of rental properties for new investors The four-step formula for choosing the right investing strategy Creative ways to get into real estate investing when you’re light on cash The secret to scaling your real estate portfolio quickly (without a ton of money) Three common rookie investing mistakes (and how to avoid them!) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPockets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Follow Real Estate Rookie on Instagram Ask Your Question for a Future Rookie Reply “Like” Real Estate Rookie on Facebook Monarch Money RealBricks Buy the Book, “Start with Strategy” Sign Up for the Real Estate Rookie Newsletter Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Which Real Estate Investing Strategy Is Best for Your Goals? (00:00) Intro (01:05) Step 1. Define Your Goals (03:44) Step 2. Determine Your Involvement (07:32) Step 3. Assess Your Finances (13:04) Step 4. Know Your Market (15:49) House Hacking (17:24) The BRRRR Strategy (22:12) Short-Term Rentals (25:20) Long-Term Rentals (29:51) Analysis Paralysis (32:25) Shiny Object Syndrome (35:22) Taking Bad Advice Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-540 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected].  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

If you're thinking about getting into real estate, you've probably asked yourself, where do I even start?

0:05.7

There's so many strategies, house hacking, flipping, a burr, short-term rentals.

0:11.0

That's honestly a little overwhelming for most rookies.

0:14.1

But what if we told you there's a simple framework that can help you pick the right investment strategy today without second-guessing yourself?

0:19.9

In this episode,

0:27.4

we're giving you the step-by-step formula to figure out which strategy is right for you. By the end, you'll have the clarity and confidence to take action and start investing. Look, we see it all the time.

0:33.0

New investors jump into real estate without a clear plan and they either burn out or they get stuck in

0:37.7

analysis paralysis. But not today. We're going to break it down so you can avoid the common

0:42.5

mistakes rookies make. I'm Ashley Care. And I'm Tony J. Robinson and welcome to the

0:53.0

Real Estate Rookie Podcast. So there's no

0:55.2

one size fits all in real estate. Each person has a different set of circumstances. So we wanted to

1:01.8

give you like a super simple kind of four-step formula that will help you figure out exactly what

1:06.5

strategy makes most sense for you to start with. Now, be sure to stick around until the very end,

1:10.2

because we're going to talk about some of the biggest mistakes we see Ricky investors make

1:13.5

when choosing the strategy. But let's get into the actual four steps of this framework first.

1:17.9

So I think the first step, and we've talked about this a few times in the podcast, but it's really

1:22.7

just about defining your goals and your motivations. And, you know, I won't beat a dead horse here. If you've listened to previous episodes, you've heard us say this before. But before you can

1:30.8

really identify what strategy makes the most sense for you, you have to ask yourself, why am I doing

1:35.7

this? Why am I investing in real estate? Is it, you know, you want immediate cash flow today?

1:40.7

Do you want long-term wealth for tomorrow? Are you looking to replace your day job? Is this just something that you want as a side hustle? What is it that's actually motivating you to do this? And specifically, when I think about motivations, you have cash flow, you have tax benefits, you have appreciation, and to a lesser extent, you have the ability to use properties yourself for vacations if you're doing something like midterm or short term. But in most scenarios,

2:05.6

you will not be able to equally satisfy all four of those motivations at the same time. So you've

2:10.2

got to pick and choose which one is most important, second and most important, third most important.

...

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