These 6 Types of Real Estate Are Likely To Turn the Biggest Profit in 2025

Instead of fixing and flipping million-dollar houses, consider catering to those on a budget.

“There is a huge opportunity in the market for savvy investors who invest in value-driven homes that the average consumer can afford,” said Dale Wills, owner and founder of Centra Companies and Central Capital Partners. “Affordability is one of the biggest issues facing home buyers when it comes to residential real estate. This has priced many buyers out of the market and made homeownership impossible for a large segment of the population.”

While residential properties can be money-makers, commercial properties can line your pockets, too.

“Self-storage facilities and car washes have low overhead costs compared to the revenue they bring in, making them easily [some] of the best types of real estate to generate a big profit,” said Laine Blackmon, branch manager at NV Capital Corporation LLC.

She also pointed to data centers as a low-overhead investment. They can be expensive upfront, but modern technology and the growth of AI drive demand and make data centers likely to make a “huge profit.”

No matter what type of real estate you decide to invest in, the experts offered these best practices to follow.

Wills encouraged investors to know their “why.”

“Before making any decisions, real estate investors need to first consider their goals. Some investors are looking to build a retirement nest egg. Others want freedom from their regular day-to-day job,” he said. “Determining your goals before you buy or sell a property will keep you laser-focused and improve your chances of success.”

The whole point of investing in anything is to generate a return.

“You make your money when you buy, not when you sell. If you overpay, it doesn’t matter how nice your renovations are. You will always struggle to make a profit,” said Glanzer.

The contractors, property managers and other professionals you work with can make or break your real estate investing business. Calvo learned this hard lesson.

“I lost $50,000 from workers abandoning the project and pocketing my money. The court system did not enforce anything. Good, honest workers are so valuable,” said Calvo.

Timing must be part of your investment strategy.

“For long-term investments, there’s never a bad time to buy. If you hold for 10 years, you’ll come out ahead. But real estate moves in cycles. Typically, it’s eight years up and a few years down,” said Stumpo.

You’ll make better deals when you have all the facts.

Wills said, “Real estate investors should do as much research on the location as they can. No matter what asset class they invest in, location will always be a significant factor in the success or failure of the investment. Research the local economy, growth trends and property values to understand what’s happening in the market.”

You don’t necessarily need money in the bank to invest in real estate.

“[You] should consider leveraging debt to keep more cash on hand. Things like private or hard money can assist with short-term financing while [you have the] time to either sell [your] property or get traditional financing,” said Blackmon.

Just like in life, in real estate investing, you should hope for the best but plan for the worst.

“There are so many factors out of your control when it comes to investing in real estate. The one thing you can control is your decisions. If you can’t live with the worst-case scenario, then don’t move forward with the investment,” said Wills.

As an investor, you need to be patient and persistent.

Glanzer said, “Real estate isn’t a get-rich-quick game. It’s about buying right, executing efficiently and knowing when to hold or sell. I think you should focus on stacking small wins!”

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