Best Investment Properties in the USA (2025) | Top Cities & Types
David Garner
David GarnerBest Investment Properties in the USA [2025 Rankings & Insights]
Looking to invest in U.S. real estate in 2025? You’re not alone. Foreign investment in U.S. property exploded by 33% for the year to April 2025. Foreigners purchased 78,100 residential properties in the USA, spending over $56 billion USD. I’ve bought over 120 investment properties in the USA since 2016. My Wife and I manage our U.S. rental property portfolio from our homes in the UK and Argentina. Whether you’re a domestic buyer or an international investor, the right property can provide strong rental income, capital appreciation, and long-term financial security – provided you know what to look for!
Key Takeaways
- Affordable Midwestern and Southern markets dominate the list in 2025.
- DSCR loans make it easier for foreign investors to finance U.S. rental properties.
- Turnkey properties offer truly passive income potential.
- Rental properties in stable markets like Cleveland and Kansas City are top performers for cash flow.
Best Investment Properties: Browse the Best Investment Properties in the USA in Our Online Portal
Top-Ranked Investment Properties in 2025
I’ve personally owned rental properties in Mississippi, Pennsylvania, Ohio, Missouri, and Alabama. Most of the U.S. rental properties I own today are single family homes and duplexes. I’ve also bought turnkey properties, fixer-uppers, and full renovation projects. Today, I’m mostly buying fully-renovated turnkey investment properties in the suburbs of major secondary markets.
Here are some of the best-performing investment property types and locations based on rental yield, purchase price, and demand trends. All of these examples are based on fully-renovated turnkey investment properties.
| Location | Property Type | Price Range | Monthly Rent | Cap Rate | Best For |
|---|---|---|---|---|---|
| Cleveland, OH | Duplex | $180K – $240K | $1,800 – $2,450 | 7.5% – 8.5% | Cashflow + Appreciation |
| Kansas City, MO | Single Family | $160K – $240K | $1,600 – $2,150 | 8.0% – 9.2% | High Income Yield |
| Indianapolis, IN | Triplex | $220K – $260K | $2,100 – $2,400 | 7.0% – 8.0% | Portfolio Builders |
| Birmingham, AL | Single Family | $140K – $250K | $1,400 – $1,950 | 7.0% – 8.0% | Turnkey Passive Income |
Why These Markets?
Markets like Cleveland and Birmingham offer relatively low property prices, stable rent demand, and investor-friendly regulations. I also have great property management relationships in these markets that make remote ownership more feasible.
Kansas City, while slightly more expensive, has great appreciation potential, and very low property taxes. that’s great for cashflow! You can buy a fully renovated single family home for around $170,000, which rents for $1,600 per month. When you consider property taxes could be as low as $500 per year, that makes for some excellent cashflow.
Both Cleveland and Kansas City were also mentioned by Dr Lawrence Yun – Chief Economist at the National Association of Realtors during their recent 2025 Midyear Real Estate Summit. Both were marked as the regional markets most likely to benefit from the forecast drop in U.S. mortgage rates towards the end of 2025 and through 2026. I believe these markets will offer the best investment properties in the USA for at least the next few years.
Related: Investing in Cleveland Real Estate: Essential Guide for Rental Property Investors
What Makes a Property “The Best”?
I’ve ranked these markets and property types based on a range of current market data. I’ve combined this with my own experience investing and owning in these markets. For the current market data, I’ve looked at:
- Rental yield (cap rate)
- Vacancy rate and tenant demand
- Stability and growth of local job markets
- Population trends
- Property taxes and holding costs
- Availability of investor-friendly financing
- Landlord/tenant regulations
One thing I’ve learned after almost ten years as a landlord in the United States is data will only tell you part of the story. If you’re looking to find the best investment properties in the USA, I can’t stress enough the importance of local market knowledge, experience, and expertise. That’s why it’s so important to build your local team when buying investment properties in the USA.
As a remote investors, we often don’t have the luxury of ‘walking the street’. We also don’t know what going on at the grass roots in a particular neighbourhood. That’s why having trustworthy boots on the ground will always be an essential part of your toolkit.
Related: How to Buy U.S. Investment Property as a Non-Resident
Tips for Foreign Investors
As foreign buyers, we are not afforded some of the luxuries of domestic investors. We’re far away, often in a different time zone, and we rely on local professionals for almost everything. Foreign buyers should:
- Build a team of local professionals
- Use DSCR loans for foreign investors for easy mortgage qualification
- Work with a real estate advisor who specializes in international buyers
- Buy in landlord-friendly states with low barriers to entry
- Ensure property management is in place before closing
Related: How to Structure Your U.S. Property Investment For Tax Efficiency and Liability Protection
Investment Properties to Avoid
I’ve made plenty of mistakes over the years trying to find the best investment properties. One thing I can tell you for sure is that not all cheap properties make good investments. In fact, many “bargain” homes end up costing you far more in the long run. One thing to bear in mind is that property is cheap for a reason. It often translates to rough neighbourhoods, big repair bills, higher property management costs, problem tenants, and evictions. That just sucks up all of that generous cashflow you thought you’d be banking. Trust me, I’d rather overpay for the right property, than get a big discount on a problem.
Here are the types of investment properties we recommend avoiding—especially for international buyers:
- Fixer-Uppers: Renovation projects are risky and difficult to manage remotely. They often suffer from spiralling renovation costs, contractor delays, and unplanned costs. Unless you’re a local expert or have a trusted team in place, avoid distressed properties.
- Properties in High-Crime or Low-Demand Areas: Ultra-cheap properties are often located in neighbourhoods with high vacancy rates, low tenant quality, and elevated risk of vandalism or rent default. These factors eat into your returns and peace of mind.
- Properties Without a Clear Exit Strategy: If you can’t confidently forecast how you’ll sell or refinance the property in the future, think twice. Liquidity matters, especially for foreign investors looking to manage risk and unlock equity.
Instead, my advice is to focus on turnkey rental properties in stable, working-class neighbourhoods with solid tenant demand, and professional management. These assets provide better cash flow, fewer surprises, and long-term upside. The motto is: “buy right, and hold tight.”
Related: USA Property Investment for Foreign Buyers [2025 Guide]
Final Thoughts
The best U.S. investment properties in 2025 aren’t just about location, they’re about cash flow, risk, and ease of ownership. I’ve made the mistake of thinking cheap is good. In fact, the reality is very different. The best investment properties in the USA are not cheap, they’re good quality homes in solid neighbourhoods, that produce cashflow.
I’m continuing to buy more investment properties through 2025. I’m focussing on these secondary markets with good housing affordability, and strong rental demand. If you’re ready to get started, book a strategy call with our team and we’ll help you source high-performing U.S. rental properties.
Find The Best Investment Properties in the USA
Start your US real estate investment journey today, and book a Free 1-2-1 Discovery Call with a member of our senior management team.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
Find The Best Investment Properties in The USA
Start your U.S. real estate investment journey today. Book a Free 1-2-1 Discovery Call with a member of our senior management team to discuss your personalized strategy.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
Frequently Asked Questions
What makes a good investment property in the USA?
A good U.S. investment property offers positive cash flow, is in a stable neighbourhood with strong rental demand, and requires minimal upfront repairs or maintenance.
Is it better to invest in single-family or multi-family properties?
Both have benefits. Single-family homes are easier to manage and finance, while multi-family properties can offer higher cash flow and economies of scale.
Can foreigners invest in U.S. real estate?
Yes, non-residents can buy, finance, and own U.S. investment properties, including with DSCR and foreign national loans.
What is a DSCR loan and why is it popular with investors?
A DSCR (Debt Service Coverage Ratio) loan qualifies based on property income—not personal income or U.S. credit. It’s ideal for foreign and remote investors.
Which U.S. cities are best for real estate investment in 2025?
Markets like Cleveland, Kansas City, Indianapolis, and parts of Florida offer strong rental yields, lower entry prices, and stable job markets.
What types of properties should I avoid?
Avoid distressed fixer-uppers, properties in high-crime areas, and homes in declining markets. These carry more risk and are harder to manage remotely.
How can I find turnkey investment properties in the USA?
Work with experienced consultants or companies that specialize in sourcing pre-vetted, professionally managed properties for international buyers.
