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When it comes to investing, the goal is to eventually turn a profit. With that in mind, even in today’s volatile market, real estate is one of the more “sure bet” financial ventures. The caveat, however, is knowing where to look for the best property deals.
While some areas will always be “in style” for real estate moguls (read: Popular beach towns like Miami or posh ski resorts like Aspen), there are other slightly less glam locations where today’s savvy investors can scoop up super deals without a premium price tag.
According to the latest Realtor.com Investor Report Midyear Update, the states where investors pay the least relative to the median purchase amount are Michigan (-53.1 percent), Maryland (-45.4 percent), Virginia (-45 percent), Delaware (-41.4 percent) and Wisconsin (-40.7 percent).
When investors buy well below the state median price, it often indicates a strategy centered on stable returns and future growth, targeting affordable or undervalued properties in up-and-coming markets with solid cash-flow prospects.
These large negative gaps may also highlight potential affordability stress for households in these areas since investors are competing with average homebuyers for entry-level housing stock. At the same time, consistently high home prices and mortgage rates may continue to constrain typical buyers, which may lead to higher investor participation.
“With affordability still stretched and inventory tight, many would-be buyers remain sidelined, giving investors a larger share of the market and, in some areas, more influence over prices,” says Realtor.com chief economist Danielle Hale.
In other words, smaller investors looking to enter the scene in search of real estate bargains they can rent out at a healthy profit margin are likely to get more for their money if they zero in on areas with comparatively lower home prices, sustained demand and a proven rental market backed by stable working-class employment and lower living costs.
With that economic edict in mind, it’s no wonder that on a metro level, Detroit currently tops the list as a hot spot for small investors. According to the Realtor.com October 2025 Monthly Housing Market Trends Report, the median Detroit-area home price dipped to $268,000 last month, $156,000 lower than the national median of $424,200. And investors in that area paid a whopping -58 percent less than the median, according to Realtor.com data.
“Detroit investors are seeing the rare combination of cash flow and long-term growth potential with Michigan being one of the few states where you can buy and a property still pencils out in year one,” says Erica Collica Swink, associate broker at Max Brook Realtors, Detroit, who has seen a recent uptick in interest from investors in her area.
“Detroit has momentum right now — that’s something you can’t manufacture that will definitely yield a positive return, no matter which way you cut it.”
Adaptive reuse projects (like a church turned into a single-family home), historic homes and new construction are giving Detroit investors multiple entry points from small multifamily to luxury new development.
“You can really have your choice on the menu here of what works best for your personal strategic plan,” says Swink. “Detroit’s creative energy, corporate expansion and record-high level tourism are big drivers here right now.”
The other top metro areas where investors pay the least relative to the median purchase price include Pittsburgh (-52.7 percent), Baltimore (-52 percent), Cleveland (-51.4 percent) and Milwaukee (-50.1 percent).
In other words, if an investor’s goal is maximizing bang for the buck, heading to the Midwest or Mid-Atlantic might just be the ticket.
