1. House hacking. This concept revolves around purchasing a property and renting out parts of it to collect income that will help you offset your housing expenses. With this method, you own a primary residence that builds equity over time, but you’re also able to collect passive rental income at the same time. House hacking is a great way to gain experience with landlording and property management.
2. Short-term rentals. If you’re in an area with high traffic from tourists or seasonal visitors, buying a property to rent out on an online portal like Airbnb can be quite profitable. As long as you’re willing to stay on top of the high rental turnover you can make a pretty penny.
3. Investing in REITs. Real Estate Investment Trusts are another way to get some skin in the game without actually having to purchase or maintain a property. They are modeled after mutual funds and allow individuals to tap into real estate the same way they would in other industries. As an REIT stockholder, you earn a share of the income produced through the investment.
Before making the leap, however, there are a few questions that you’ll need to answer for yourself, including:
If you think you’re ready to start investing in real estate, I’d love to hear from you. Reach out and give me a call or send me an email and I’d be happy to answer any questions you might have.