Best Real Estate Model for Beginners in 2024: 6 Strategies Compared (With Data)
Preston Seo
In 2024, you need to earn at least $126,000 per year just to afford the average house. With interest rates at 8% and fewer properties hitting the market, traditional real estate investing has become increasingly difficult for beginners. But there's a strategy that bypasses all these barriers entirely.
As someone who has purchased 46 rental properties across Utah, Arizona, Tennessee, Virginia, and Florida, I've experienced both the good times (buying at 4-5% rates) and today's challenging market. In this guide, I'm breaking down the 6 most popular real estate investment strategies and revealing which one gives beginners the best chance of success in 2024.
In this article:
- The 2024 Market Reality
- 6 Real Estate Models Compared
- Why the Bridge Method Wins
- Real Example: $26K to $9K/Month
- How to Get Started
- FAQs
The 2024 Market Reality: Why Traditional Real Estate Is Harder Than Ever
Before diving into strategies, let's understand why 2024 is fundamentally different from when I started investing.
The Numbers That Changed Everything
| Factor | 2020-2021 | 2024 | Impact |
|---|---|---|---|
| Average Home Price | $320,000 | $410,000 | +28% |
| Interest Rates | 3-4% | 8% | +100% |
| Monthly Mortgage | ~$1,900 | ~$3,200 | +68% |
| Required Income | ~$75,000 | $126,000 | +68% |
| Minimum Savings | ~$25,000 | $40,000 | +60% |
What This Means for First-Time Investors
The down payment reality: At 6% down (the average for first-time buyers), you need approximately $24,600 just for the down payment. Add closing costs, and you're looking at $30,000+ before you even own the property.
The income barrier: Banks require a maximum 43% debt-to-income ratio. With a $3,200 monthly mortgage, you need a household income of at least $126,000 per year. This puts homeownership out of reach for roughly 80% of Americans.
The interest rate trap: Here's the painful truth - at 8% interest, you'll pay more in interest over the life of the loan than the actual house costs. You're essentially paying for the house twice.
"Even if you can afford an 8% mortgage in 2024, you'll likely hesitate to pull the trigger because you'll pay more in interest than what the actual house costs."
Only Two Options... Or Is There a Third?
Given these market conditions, the real estate community is divided into two camps:
Wait for rates to drop - This could take years, and there's no guarantee rates will return to 2020 levels. Meanwhile, prices may continue rising.
Buy now anyway - Accept the higher costs and hope to refinance later. But this assumes rates will drop significantly and you can afford today's payments.
But there's a third option that most people overlook - one that bypasses all these barriers entirely. Before I reveal it, let's analyze all six strategies so you can make an informed decision.
6 Real Estate Investment Models Compared
Model 1: Wholesaling
What it is: Finding distressed properties, getting them under contract, then selling (assigning) that contract to another investor for a fee.
Startup Capital Required: $0-$5,000 (mainly for marketing and earnest money deposits)
| Pros | Cons |
|---|---|
| Minimal upfront investment | Not passive income - requires constant hustle |
| Great for learning deal analysis | Income stops when you stop working |
| Builds negotiation skills | Increasingly competitive in hot markets |
| No credit check required | Finding motivated sellers is challenging |
| Quick path to first profits | Legal requirements vary by state |
Verdict for 2024: Wholesaling remains viable but is increasingly competitive. It's better as a learning experience and capital-building strategy than a long-term wealth-building approach.
Model 2: House Hacking
What it is: Buying a multi-unit property (duplex, triplex, fourplex), living in one unit, and renting out the others to cover your mortgage.
Startup Capital Required: $20,000-$50,000 (FHA loan allows 3.5% down)
| Pros | Cons |
|---|---|
| Lower barrier than traditional investing | Still need to qualify for a mortgage |
| FHA loans allow 3.5% down | Must live in the property for 1 year (FHA) |
| Learn landlord skills with training wheels | 8% rates still make this expensive |
| Reduces or eliminates housing costs | Multi-units are competitive in most markets |
| Builds equity while you live there | Property management while living there is awkward |
Verdict for 2024: House hacking is harder to execute at 8% interest rates. The math that made this attractive at 4% doesn't work as well today. You still need significant savings and qualifying income.
Model 3: Traditional BRRRR
What it is: Buy, Rehab, Rent, Refinance, Repeat. Purchase distressed properties, renovate them, rent them out, refinance to pull out your capital, then repeat the process.
Startup Capital Required: $50,000-$150,000+ (for purchase, renovation, and holding costs)
| Pros | Cons |
|---|---|
| Forces equity through renovation | Requires substantial upfront capital |
| Creates long-term wealth building | 8% refinance rates hurt the "R" in BRRRR |
| Scalable once you master it | Renovation costs have increased significantly |
| Multiple exit strategies | Holding costs are higher with current rates |
| Tax benefits of ownership | Finding distressed properties is competitive |
Verdict for 2024: The BRRRR strategy is significantly impacted by high interest rates. The refinance step, which historically allowed you to pull out most of your capital, now leaves more money trapped in deals. This reduces scalability.
Model 4: Subject To
What it is: Taking over a seller's existing mortgage payments without formally assuming the loan. You get the deed while the original mortgage stays in the seller's name.
Startup Capital Required: $5,000-$20,000 (for closing costs, repairs, and seller concessions)
| Pros | Cons |
|---|---|
| Access to seller's lower interest rate | Due-on-sale clause risk |
| Little money down possible | Requires finding motivated/distressed sellers |
| Creative financing option | Complex legal structure |
| Can acquire properties you couldn't qualify for | Seller's credit remains at risk |
| Works in any interest rate environment | Requires strong negotiation skills |
Verdict for 2024: Subject To is attractive because you can potentially acquire properties with 3-4% interest rates from sellers who bought in 2020-2021. However, finding these opportunities requires specialized skills and marketing. It's not a beginner-friendly strategy.
Model 5: Fix and Flip
What it is: Purchasing distressed properties, renovating them, and selling them for profit.
Startup Capital Required: $75,000-$200,000+ (for purchase, renovation, and holding costs)
| Pros | Cons |
|---|---|
| Large profit potential per deal | High capital requirement |
| Relatively quick returns (6-12 months) | Renovation costs have skyrocketed |
| Active income you can control | 8% hard money rates increase holding costs |
| Builds renovation and contractor skills | Fewer distressed properties available |
| Clear exit strategy | Market timing risk |
Verdict for 2024: Fix and flip margins are squeezed in 2024. Higher interest rates on hard money loans, increased renovation costs, and fewer distressed properties make this challenging for beginners. One mistake can wipe out your profit.
Model 6: The Bridge Method (Airbnb Arbitrage)
What it is: Finding undervalued rental properties, leasing them long-term, furnishing them as short-term rentals, and charging premium nightly rates on platforms like Airbnb and VRBO.
Startup Capital Required: $5,000-$30,000 (for first month's rent, deposit, furnishing, and supplies)
| Pros | Cons |
|---|---|
| No property purchase required | Requires landlord approval for subletting |
| Avoid 8% interest rates entirely | Some markets have STR restrictions |
| 10x cash flow vs. traditional rentals | Requires active management (can be automated) |
| Lower startup costs | Revenue can be seasonal in some markets |
| Cash flow positive in 30-60 days | Guest turnover and cleaning logistics |
| Scalable without more debt | Platform dependency |
Verdict for 2024: The Bridge Method is specifically designed for market conditions like 2024. By removing the property purchase from the equation, you bypass interest rates, down payments, and income requirements entirely. This is why it's my top recommendation for beginners.
Why the Bridge Method Wins for Beginners in 2024
The Bridge Method is a strategy I discovered back in 2021. It combines the power of real estate income without the barriers of property ownership.
How the Bridge Method Works
Find undervalued rental properties - Look for properties in good locations that landlords are having trouble renting traditionally.
Negotiate a lease with subletting rights - Present yourself as a professional who will maintain the property better than traditional tenants.
Furnish and list on short-term rental platforms - Transform the property into a premium Airbnb or VRBO listing.
Charge premium nightly rates - With proper market research, you can charge 3-5x what you pay in monthly rent.
Keep the spread - After rent, utilities, cleaning, and supplies, the remaining revenue is your profit.
Why This Strategy Dominates in 2024
No down payment required: While traditional investors need $40,000+ to get started, you can launch your first Bridge Method property for $5,000-$30,000.
Interest rates don't matter: When you're leasing instead of buying, you're completely immune to interest rate fluctuations.
No mortgage qualification: Your income, credit score, and debt-to-income ratio are irrelevant to this strategy.
10x cash flow potential: Traditional rentals might generate $200-500/month in cash flow. Bridge Method properties can generate $2,000-$10,000+ monthly.
Faster to profitability: While BRRRR or Fix and Flip projects take 6-12 months to see returns, Bridge Method properties can be cash flow positive in 30-60 days.
The Bridge Method vs. My 40 Rental Units
Here's a comparison that shocked me when I first ran the numbers.
| Metric | 40 Traditional Rentals | 1 Bridge Method Property |
|---|---|---|
| Properties Owned | 40 | 0 |
| Total Capital Invested | $500,000+ | $26,000 |
| Monthly Cash Flow | ~$8,000 combined | $9,000 clear profit |
| Interest Rate Exposure | High (varied rates) | None |
| Maintenance Responsibility | Yes | Landlord |
| Appreciation Benefit | Yes | No |
| Time to First Cash Flow | Years | 30-60 days |
The single Bridge Method property generates more monthly cash flow than all 40 of my traditional rental units combined.
Real Example: $26K Investment to $9K Monthly Profit
Let me walk you through an actual Bridge Method property I set up in Arizona in 2021.
The Investment Breakdown
| Category | Amount |
|---|---|
| New furniture | $18,000 |
| Amenities and decor | $5,000 |
| Photography and listing setup | $1,500 |
| Initial supplies and essentials | $1,500 |
| Total Investment | $26,000 |
The Results (First 30 Days)
| Metric | Amount |
|---|---|
| Gross Revenue | $15,000 |
| Rent Payment | $2,800 |
| Utilities | $400 |
| Cleaning (per turnover) | $150 x 8 = $1,200 |
| Supplies and misc | $600 |
| Platform fees | $1,000 |
| Net Profit | $9,000 |
Why This Works
Premium positioning: With $26,000 invested in quality furniture and amenities, this property stands out from competitors who cut corners.
Market research: Arizona has strong short-term rental demand from tourists, snowbirds, and business travelers year-round.
Professional setup: Professional photography, optimized pricing, and compelling listings attract higher-quality guests willing to pay premium rates.
No landlord expenses: The property owner handles major repairs, HVAC issues, and structural maintenance. Your only expenses are rent and operations.
How to Get Started with the Bridge Method
If you're ready to bypass the 2024 housing market barriers and start building real estate cash flow, here's your action plan.
Step 1: Analyze Your Market
Before anything else, research short-term rental demand in your area:
- What's the average nightly rate for different property types?
- What's the occupancy rate across seasons?
- Are there STR regulations you need to navigate?
- What amenities command premium rates?
Tools like AirDNA, Mashvisor, and manual Airbnb research can provide these insights.
Step 2: Calculate Your Numbers
For any potential property, run these calculations:
- Monthly rent + utilities = Your fixed costs
- Average nightly rate x 20-25 nights = Conservative monthly revenue
- Revenue - Fixed costs - Variable costs (cleaning, supplies, fees) = Projected profit
Only pursue properties where your projected profit exceeds $2,000/month to build in margin for slower months.
Step 3: Approach Landlords Professionally
The key to getting landlord approval is positioning yourself as a professional:
- Present a business plan showing how you'll maintain the property
- Offer to pay above-market rent for subletting rights
- Show proof of insurance coverage
- Provide references if available
- Demonstrate your commitment to property care
Many landlords are actually excited about arbitrage tenants because we maintain properties meticulously.
Step 4: Set Up for Success
Once you have a property:
- Invest in quality furniture and amenities (this is where many beginners cut corners)
- Get professional photography
- Write compelling listing descriptions
- Set up automated messaging for guest communication
- Build reliable cleaning and maintenance teams
Step 5: Optimize and Scale
With your first property running successfully:
- Collect reviews to build credibility
- Implement dynamic pricing to maximize revenue
- Document your systems for replication
- Add additional properties as you master operations
Watch the Full Strategy Breakdown
Video highlights:
- 0:00 - The 2024 market reality and income requirements
- 3:15 - Why traditional investing is harder than ever
- 6:30 - Analysis of all 6 real estate models
- 10:45 - Introduction to the Bridge Method
- 14:00 - Real example: $26K to $9K monthly profit
- 16:30 - How to get started today
Frequently Asked Questions
What is the best real estate model for beginners in 2024?
The Bridge Method (Airbnb arbitrage) is the best model for beginners in 2024 because it requires no property purchase, avoids 8% interest rates, has low startup costs ($5K-$30K), and can generate 10x the cash flow of traditional rentals. Real example: $26K invested in furniture and amenities generated $9K monthly profit from a single property.
Can you really make money in real estate without buying property?
Absolutely. Airbnb arbitrage allows you to lease properties and rent them short-term for profit. The spread between your monthly rent and nightly revenue is your income. Many operators generate $3,000-$10,000+ monthly per property without owning any real estate.
Is Airbnb arbitrage legal?
Yes, when done properly. The keys are: getting landlord permission for subletting, complying with local short-term rental regulations, obtaining proper business licenses and insurance, and paying applicable taxes. Always research your specific market's requirements.
How much money do I need to start Airbnb arbitrage?
Most operators start with $5,000-$30,000 for their first property. This covers first month's rent, security deposit, furniture, supplies, and initial operating expenses. Higher-end properties with premium amenities require more investment but also command higher nightly rates.
What if interest rates drop - should I wait to buy?
Even if rates drop, the Bridge Method remains attractive for beginners. You can start generating cash flow now while rates are high, build capital and experience, then decide whether to purchase properties later. Waiting costs you time and potential income.
How is the Bridge Method different from traditional rental investing?
Traditional rentals require massive capital ($40K+ down payment), mortgage qualification, and generate modest cash flow ($200-500/month). The Bridge Method requires $5K-30K, no mortgage qualification, and can generate $2,000-10,000+ monthly. One Bridge Method property can outperform 40 traditional rentals.
Start Your Real Estate Journey Today
Ready to bypass the 2024 housing market barriers and start building real estate cash flow?
The Bridge Method has helped thousands of beginners generate income from real estate without the traditional barriers of down payments, interest rates, and income requirements.
Learn the Bridge Method at Legacy Investing Show
Why Legacy Investing Show?
- 2,000+ students trained across the United States
- $10M+ in cumulative student revenue generated
- Proven system for finding properties, getting landlord approval, and optimizing listings
- Active community of short-term rental investors
- Hands-on mentorship from successful practitioners
The market conditions that make traditional real estate difficult also create unprecedented opportunity for those willing to think differently. Don't let high interest rates and impossible income requirements keep you on the sidelines.
Related Resources
- Getting Started with Airbnb Arbitrage: Complete Beginner's Guide
- Airbnb Startup Costs: Complete Capital Breakdown
This guide is based on Preston Seo's analysis of the 2024 real estate market. All statistics represent market conditions as of the publication date. Individual results vary based on market, effort, and capital invested.
Last updated: January 24, 2026
Frequently Asked Questions
The Bridge Method (Airbnb arbitrage) is the best model for beginners in 2024 because it requires no property purchase, avoids 8% interest rates, has low startup costs ($5K-$30K), and can generate 10x the cash flow of traditional rentals. Preston's real example: $26K invested in furniture and amenities generated $9K monthly profit from a single property.
You need at least $126,000 annual household income and $40,000 in savings to afford the average house in 2024. With median home prices at $410,000 and 8% interest rates, your mortgage payment would be approximately $3,200/month. Banks require a maximum 43% debt-to-income ratio.
The Bridge Method is an Airbnb arbitrage strategy that combines the power of real estate without buying property. You find undervalued rental properties, lease them long-term, furnish them as short-term rentals, and charge premium nightly rates. This generates 10x more cash flow than traditional rentals because you avoid down payments and high interest rates.
Wholesaling can be a good starting point because it requires minimal upfront capital and builds valuable skills in finding deals and negotiating. However, it requires more active work (not passive income), income depends on constantly finding new deals, and in hot markets finding motivated sellers is extremely competitive.
House hacking is challenging in 2024 due to 8% interest rates making property purchases expensive, FHA loans requiring you to live in the property for a year, and the strategy still requiring $40K+ in savings for down payment. It works better when interest rates are 4-5%.
The BRRRR strategy is more challenging in 2024 because 8% interest rates significantly reduce refinancing benefits, you need substantial capital for initial purchase and renovation, and finding undervalued properties is harder in competitive markets. The math that worked at 4% rates often doesn't work at 8%.
Subject To is a creative financing strategy where you take over the seller's existing mortgage payments without formally assuming the loan. This can give you access to lower interest rates from the seller's original loan. However, it requires specific distressed seller situations, carries due-on-sale clause risks, and requires strong negotiation skills.
Fix and Flip is risky for beginners in 2024 because it requires significant capital for purchase and renovation, renovation costs have increased substantially, holding costs are higher with 8% interest rates, and profit margins are squeezed with fewer distressed properties available.
Preston's example shows a single property in Arizona generating $15,000 in monthly revenue and $9,000 in clear profit after expenses. This single arbitrage property brings in more cash flow than his 40 traditional rental units combined. Results vary by market and property.
Legacy Investing Show has trained 2,000+ students and generated $10M+ in cumulative student revenue. The program teaches the Bridge Method and provides mentorship, scripts, and community support. Many students have replaced their full-time income within 6-12 months.