Single-family rentals (SFRs) are the most popular entry point into real estate investing. You're buying properties you understand—houses in neighborhoods—and renting to tenants who want house-living without ownership.
Why SFRs?
Accessible financing—conventional mortgages with 15-25% down. Quality tenants—families often stay for years. Exit flexibility—sell to investors or owner-occupants.
Finding Properties
Look for stable neighborhoods with good schools and economic diversity. The 1% rule: monthly rent should equal at least 1% of purchase price for potential positive cash flow. Always run full cash flow analysis.
Self-management saves the 8-10% management fee but requires your time. As you scale, professional management becomes more valuable.