2023-07-16 10:22:00 ET
Investing in a rental property can be a great way to generate some passive income. However, there are pitfalls to buying a rental property. The cost of purchasing a property and making it rental ready can be out of reach for many beginning investors. Meanwhile, owning a rental property isn't as passive as it might seem. Dealing with delinquent tenants and unexpected repairs can turn a rental property from a money maker into a money pit.
A better option for beginners is to invest in a real estate investment trust ( REIT ). These professionally managed entities typically own a portfolio of income-producing rental properties. They pay their investors dividends, enabling them to enjoy truly passive income from real estate . Many REITs have relatively low share prices, making them very accessible for beginning investors. Camden Property Trust (NYSE: CPT) is a great option for those just starting out. Shares of the REIT only cost about $112.
Camden Property Trust is a residential REIT with a diversified rental housing portfolio:
For further details see:
How to Start Earning Real Estate Passive Income for Around $100