2024-08-04 04:26:00 ET
Investing in a rental property can be expensive. When you add up the down payment, closing costs, repairs, and operating expenses, it could cost over $50,000 to purchase a property and get it ready to rent. Further, while rental properties can be a good way to generate passive income, unexpected expenses and vacancies can cause the income to be lumpy.
Another issue with rental properties is the lack of diversification . Given the high upfront costs, most people can only buy one property at a time.
Instead of putting all your eggs in one basket, you could consider a much more diversified (and lower-cost) alternative. Leading residential real estate investment trust (REIT) Invitation Homes (NYSE: INVH) owns and manages over 100,000 rental homes. Better yet, it only costs around $35 to buy a share of the REIT. Here's a closer look at this great rental property alternative.
For further details see:
Why Spend Over $50,000 to Buy 1 Rental Property When You Can Invest in Over 100,000 Rental Homes With This Alternative (For a Lot Less Money)