5 Best Real Estate Investments Right Now (and Where to Buy)

Looking to diversify your retirement portfolio or park your money where it will work harder for you? In this article, we’re going to share five of the best real estate investments right now. Keep reading to learn the ins and outs of each of these strategies, their pros and cons, and the best markets to invest in!

Summary:

• Turnkey rentals, small multifamily properties, REITs, private money lending, and house flipping are some of the best investments right now.

• Investing in turnkey rentals is a semi-passive way to earn real estate cash flow, appreciation, and tax benefits.

• Florida, Texas, and South Carolina are three of the top real estate markets to invest in at the moment.

Why Should You Invest in Real Estate?

Real estate investing is a powerful wealth-building tool you can use to diversify your investment portfolio and reduce the risk of a large loss.

Some real estate investments, like REITs and private money lending, are passive and allow you to earn money through dividends and interest payments. Other investments, like rental properties, can give you cash flow, appreciation, and tax benefits, which you can’t get with stocks and most other investments!

The Best Real Estate Investments Right Now (5 Options)

What are the best ways to invest in real estate in 2025? Here are five top options to consider!

• Turnkey Rentals

A turnkey rental is a newly built or renovated property that you buy with management and tenants already in place. These low-maintenance properties give you passive or semi-passive income, have relatively low turnover, and give you all the benefits of property ownership.

With Rent to Retirement, you can put as little as 5% down on a new build. That’s significantly lower than the amount you’ll need for most investment property down payments and even some passive investments!

Browse Rent to Retirement’s high-cash-flow turnkey rentals!

Pros

There are several reasons why many investors prefer turnkey rentals:

• Semi-passive investments
• Lower maintenance
• Professionally managed
• Renters already in place
• Total property ownership
• Cash flow, appreciation, and tax benefits

Cons

Turnkey rentals are some of the best real estate investments right now, but there is one trade-off:

• Fewer value-add opportunities

2. Small Multifamily Properties

A small multifamily property is a building with 2-4 units (sometimes called a duplex, triplex, or fourplex). You can treat it as a normal investment property by placing tenants in each of the units, or you can put as little as 3.5% down with the house hacking strategy—making it your primary residence, living in one unit, and renting out the other units to help offset your mortgage payment.

Pros

Small multifamily properties offer the following benefits to investors:

• Lower down payments (if you house hack)
• More value-add opportunities
• Lower vacancy risk
• Total property ownership
• Cash flow, appreciation, and tax benefits

Cons

Here are a few disadvantages to be mindful of before buying a multifamily property:

• Higher maintenance
• Active investments (unless hiring a property manager)
• Higher down payments (if you don’t house hack)

Put less money down with Rent to Retirement’s 5%-down financing options!

3. REITs (Real Estate Investment Trusts)

Real Estate Investment Trusts (REITs) are companies that own and manage real estate. As the investor, you buy shares of these companies and receive dividends since REITs are legally obligated to distribute at least 90% of their taxable income. Keep in mind that you are investing in the company and not the real estate itself, so you have no control over how properties are managed or when they are sold.

Pros

REITs are some of the best hands-off investments and have the following advantages:

• Passive investments
• Regular dividends
• Lower startup costs
• Invest from anywhere in the world
• Often more liquid than other investments

Cons

While REITs require very little time or energy on the investor’s end, there are a few drawbacks:

• Low/no control
• You don’t directly own the property
• Dividend yield can (and will) change 
• No direct tax benefits 

4. Private Money Lending

Private money lending is when you lend your own capital to other investors for house flips, renovations, and other real estate-related projects. Most terms range from a few months to a few years, and as the investor makes payments, you recoup your initial investment with interest. Today, private money lenders can expect to make returns upward of 10%!

Pros

Here are a few reasons why you might lend out your private capital to other investors:

• Completely passive
• Flexible terms
• Great returns while interest rates are high

Cons

Make sure you’re aware of the potential pitfalls of private money lending:

• Lots of capital needed
• No/low control
• Must be experienced in analyzing real estate before lending 
• Investment opportunities are not as easily accessible as turnkey rentals 

5. House Flipping

House flipping is an investment strategy that involves buying a distressed or undervalued property, renovating it to increase its value, and selling it for a profit. These projects are typically turned around within a few months to a year, and depending on local market conditions, experienced investors can make a large profit in a relatively short amount of time. In Q2 of 2024, house flipping delivered an average return on investment (ROI) of 28.7%!

Pros

Flipping houses is a lucrative strategy for the following reasons:

• More value-add opportunities
• Higher potential returns
• Less competition as interest rates are high

Cons

This strategy isn’t for everyone, so make sure you know what you’re getting into:

• VERY active investments
• Steeper learning curve
• Higher risk
• Higher taxes
• Must be a very experienced investor to start 

Don’t want to deal with renovations and other headaches? Check out our hands-off turnkey investments!

Best Real Estate Investment Markets for 2025

Now that you know what to invest in, where should you invest? There are thousands of markets across the US, but here are a few of the best real estate investment markets for 2025:

Florida

Florida has no state income tax and relatively low average property taxes at 0.82%, making it one of the top states for real estate investors. It’s also one of the fastest-growing states in the US and home to some of the nation’s top vacation markets!

Why We Like It

There are several advantages to investing in Florida real estate:

• High appreciation
• Low property taxes
• Population growth 
• Top vacation markets
• No state income tax (IF you live in Florida)!

Where is the Florida housing market headed in 2025? Check out our full review!

Did you know Rent to Retirement offers new-build turnkey rentals in Florida?

Texas

Despite having one of the nation’s highest property tax rates, Texas, like Florida, has no state income tax and very landlord-friendly housing laws. What’s more, the “Lone Star State” is the fastest-growing state in the US and has strong rental demand.

Why We Like It

Many investors own real estate in Texas for these reasons:

• High rental demand
• Population growth
• Strong job market
• No state income tax (IF you live in Texas)!

Find out why investors are flocking to the Texas housing market in 2025!

South Carolina

The South is the fastest-growing region in the US, and South Carolina is no exception. Its blend of below-average home prices and high appreciation makes it one of the best real estate investment markets today.

Why We Like It

South Carolina real estate investors benefit from the following:

• High appreciation
• Low home prices
• Population growth

Check out our full list of the best states to buy rental property in 2025!

Buy the Best Real Estate Investments Right Now: Turnkey Rentals!

If you want to build wealth through real estate, turnkey rentals are a no-brainer. With property management and tenants already in place, these investments require very little work on your end. Because you own the property directly, you’ll get cash flow, appreciation, and tax benefits unique to active real estate investments.

With Rent to Retirement’s 5%-down financing for new builds, you can bring even less money to the closing table! 

Best Real Estate Investments Right Now FAQs

Which Real Estate Is Best to Invest in?

Turnkey rentals are some of the best real estate investments, as they give you all the benefits of property ownership—cash flow, appreciation, and tax advantages. These properties are more passive than most rentals, as they are professionally managed and require less maintenance!

What Is the 2% Rule in Real Estate?

The 2% rule states that a rental property should generate 2% of the purchase price in monthly rent. This means that if you buy a $200,000 rental property, it should bring in $4,000 per month. Keep in mind that this rule is outdated and very difficult to achieve in today’s housing market!

Is It Wise to Invest in Real Estate Right Now?

Yes, it’s still a good time to invest in real estate, largely due to the lack of competition caused by high interest rates and rising home prices. If you have the means to invest in 2025, you could buy an appreciating asset without overpaying for it.