2023-08-05 08:36:00 ET
Investing in real estate can be an excellent way to generate income. However, while owning a rental property is technically a passive investment, that's not always the case. It sometimes takes a lot of work to manage a rental, including finding tenants, keeping track of expenses, and dealing with maintenance issues. Meanwhile, unexpected vacancies and expensive repairs can quickly turn an income-generating property into a money pit.
A much easier way to make passive income from real estate is to invest in a real estate investment trust, or REIT . Three great options are Invitation Homes (NYSE: INVH) , Mid-America Apartment Communities (NYSE: MAA) , and Sun Communities (NYSE: SUI) . They offer low-cost ways to turn $1,000 into a truly passive income stream.
Buying a single-family home as a rental property is a common way many people begin their real estate investing journey. They're relatively easy to manage and aren't as cost-prohibitive as other real estate investments. However, they're not exactly passive investments and still require a pretty hefty initial investment in the form of a down payment and closing costs.
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Got $1,000? Generate Real Estate Income the Easy Way With These Investments