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4 Best Types of Rental Properties for BEGINNERS to Buy

Real Estate Rookie

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Episode #658

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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!

12 Comments

@lanceolenius8179 9 months ago

I've started with BRRRR to build long term wealth but starting with little of my own capital. Closed on my first property this month in another state and started rehab. I've got a great team helping me. Was so nervous doing it this way but taking that leap finally has actually helped calm my nervousness. More to come in 2026.

@Lisa-nt7wt 9 months ago

Thanks guys for the transparency on this topic. Very helpful !❤

@derekbueckert7428 8 months ago

I knew nothing about real estate at all but I've been doing construction renovations for the last 20 years and 3 years ago I watched a random you tube video about how to get a purchase agreement written up so I started looking very desperately 6 months later I got my first house signed up. 8 months later I had it paid off was living in it and renovating it while living in it with my wife and 4 kids all 7 years old and under. Saved some more money because now I didn't have to pay for rent bought another cheap house and it's a full gut Reno and it's about half done now. But then I got another deal that was too good to pass up. That one is also going to be a full gut Reno. Now I am thinking I should probably have taken it easier and rather focused on getting the first one to the finish line rather than getting so excited because I have a none bankable status for two and a half years still I'll get them done but it's just going to take a little bit longer because I do my own renovations work a job and I can only buy materials at the pace my income allows for. Great video thanks for all your In depth insights

@richardjudge2322 9 months ago

Thank You Ashley and Tony I appreciate your time.

@DreamCreatorsStudio 9 months ago

Great episode — clear structure and smooth pacing. .

@LuitzB 9 months ago

I appreciate both of your time👍

@JC-nk4ny 9 months ago

Thank you guys for all you do to help us rookies! My why is because I want to become financially free by continuing to build my real estate portfolio to provide for my family and to not have a financial burden for the rest of our lives! I have been watching and studying your videos for the past 2 years and in the spring of 2025 used a HELOC (8%) for a down payment on a new home and are now renting out our previous home for $3,000 a month! We then had to refinance our first mortgage to pay off the first time home buyers loan and HELOC because we did not realize we could not rent out our first property with that type of loan. Unfortunately we lost our lower interest rate with the refinance, but are able to still keep our previous property and enter the rental game. So we now have an investment loan on our first property at 7.25% and our primary residence is at 6.75. Trying to figure out our next move, one being to refinance to get lower rates on both properties eventually. Also considering using the HELOC again to purchase another rental property if we can find one where the numbers will work out... Goal for 2026 is to add another rental property to our portfolio!

@ashog1426 9 months ago

I spent all my money remodeling my own apartment that I just bought But I am going to save up again in this next 5-10 years to buy a multi unit property somewhere in CA or Las Vegas

@derekgisburne8980 9 months ago

Guys, this was really good content, and valuable discussion ... Thank you!!
(And yup, I'm nodding my head, thinking I know 90% of this stuff - although your stories of experiences add more context and substance!)
Well, happy to say I AM TAKING ACTION! Have set the goal, and have started the process for PURSUING an income-producing property concept! I'm subbed, will keep checking your content ... may use your "lender finder" service for acquisitions in the future! 😉 Thanks again, take care, and God bless! (And all the best in your endeavors, to anyone else reading this!) Cheers! 🥳

@jerseya216 9 months ago

My problem is no capital or reserves

@Sweetzkytravel 5 months ago

I want to buy my first rental property but I don’t know where to start from

@erikvaldur3334 9 months ago

How do I determine if a state is landlord friendly or renter friendly? I'm a Carpenter of over 35 years and I'm looking to grab my first investment property. Be it a rental or a flip. I grew up in NJ, which is definitely a renter friendly state. Now I reside in a landlord friendly state. I know this because I worked for an investor and dated a girl who did property management.
I'm considering out of state investment but am uncertain how to determine this one important aspect.