Investing in Real Estate for Beginners: How to Get Started (Even on a Budget)

Thinking about real estate investing but feel overwhelmed by the risks, jargon, or high price tags? You’re not alone. For many beginners, real estate feels like a wealthy person’s game—but that’s far from the truth.

With the right plan and a little research, you can start building wealth through real estate—no fancy portfolio or six-figure income required. Take it from someone (me!) who started their own Property Management Company at 30 years old, with a newborn and only 1 family income. It's possible!

Let’s break down exactly what real estate investing is, why it’s worth considering, and how beginners like you can get started safely and affordably.

Why Invest in Real Estate?

Real estate can be one of the most powerful ways to build long-term wealth. Here’s why:

• Appreciation: Property values usually increase over time.

• Cash Flow: Rental income can provide monthly passive income. (I emphasize CAN because sometimes there are unexpected costs that eat away at your income.. we will get into that in a little bit).

• Tax Benefits: Investors can deduct expenses, depreciation, and sometimes avoid capital gains.

• Tangible Asset: You can see, touch, and even live in your investment.

• Legacy: Real estate is something you can pass on to your children.

  
  

Different Ways to Invest in Real Estate (You Don’t Have to Buy a House!)

1. Traditional Rental Property (this is what we are currently doing!)

Buy a single-family home or duplex and rent it out. This requires a down payment, maintenance responsibilities, and sometimes dealing with tenants.

From someone with experience doing this, remember that you will need to make sure you also have some extra savings for any kinds of repairs that may be needed. Unless you have it stated in your lease that all repairs are the responsibility of the tenant (which I don't believe is fair to the tenant, considering it's your house) you will need funds available to pay for maintenance. We've had our rental for 3 years and are just NOW making extra monthly income because we had some major repairs we had to use the "extra" income on.

Tip: Start small with a property in a low-cost area or consider “house hacking”—buy a duplex, live in one side, rent out the other. Just make sure to do your research on the area of town the house is in, you want something within your price range, but also where there actually ARE renters..

2. Real Estate Investment Trusts (REITs)

Think of REITs like stocks, but for real estate. You invest in companies that own or finance income-producing properties. They pay out dividends and are super beginner-friendly.

Great for: Beginners who want low-risk, no-hassle real estate exposure with just $10–$100.

3. Real Estate Crowdfunding Platforms

Platforms like Fundrise, Arrived Homes, or Roofstock allow you to invest small amounts (as little as $10) into real estate projects or rental properties. We LOVE this idea for anyone just dipping their toe in the real estate market!

Great for: People who want to start investing passively with limited funds.

4. Short-Term Rentals (Airbnb or VRBO)

Buy or rent a property and list it as a vacation rental. This can bring in more income than long-term tenants but requires more management.

Tip: Look for popular weekend getaway locations within driving distance of your city. That way you are within driving distance in case anything comes up (plus, you can also take advantage of staying there when you need a little getaway!)

5. Wholesaling or Flipping

Wholesaling involves finding properties at a discount and passing them on to investors. Flipping involves buying, renovating, and reselling properties for profit.

Higher risk, higher reward. Best for those ready to put in serious time and research. While this is something we eventually want to get into because you can potentially make really good profits... we are waiting until we have a solid savings amount to use or "fall back on" because there are LOTS of risks with this strategy.

Beginner Tips: How to Get Started Safely

1. Educate Yourself

Read books, listen to podcasts, and follow beginner-friendly YouTube channels. A few solid choices:

• BiggerPockets Podcast

• The Book on Rental Property Investing by Brandon Turner

• Rich Dad Poor Dad by Robert Kiyosaki

  
  

2. Know Your Budget

You don’t need a ton of money, but you do need a clear understanding of:

• Your credit score

• Down payment options (FHA loans require as little as 3.5% - we used FHA for our rental)

• Ongoing costs like maintenance, property taxes, and vacancies

  
  

3. Start Small

It’s better to make one smart investment than to overextend yourself. REITs, crowdfunding, or house hacking can be great first steps.

4. Surround Yourself With Knowledgeable People

Talk to:

• A local real estate agent who works with investors

• A lender familiar with investment loans

• Other beginner investors in online communities like BiggerPockets or local Facebook groups

  
  

Beginner Mistakes to Avoid

• Overestimating profits (especially from short-term rentals - this was our mistake!)

• Underestimating repair and maintenance costs (again, been there done that! take it from us)

• Skipping due diligence on location or tenant screening

• Letting fear or perfectionism delay your first move. (If we would have waited.. we most likely would NEVER have gotten started because immediately after we purchased our rental the market, as well as our financial situation, changed)

  
  

Can You Invest with Little Money? YES.

If you’re on a budget, start with:

• REITs (publicly traded)

• Fundrise or Arrived Homes

• Partnering with someone who has capital but needs your sweat equity or management skills

  
  

Your Real Estate Investing Starter Checklist

• Choose your goal: Cash flow? Appreciation? Retirement income?

• Research beginner-friendly strategies

• Check your credit and savings

• Start with a REIT or crowdfunding app

• Join a real estate investing Facebook group or local meetup

• Keep learning while taking small, consistent steps

Call to Action (CTA):

Ready to take the first step? Download my FREE guide: “Real Estate Investing Checklist for Beginners" — perfect for busy parents and first-time investors.

**the books suggested in this article are linked to an affiliate link. This means if you purchase one of them through my links, I receive a commission, with no extra cost to you. If you do this I sincerely thank you!