How to Create Passive Income from Real Estate Investing [2021]

Investing in real estate comes in many flavors with varying degrees of time, effort, commitment and investment. Real estate investing offers opportunities for both passive and active income which you can start making consistently and quickly when done properly. 

Passive real estate investing has lower return potential than more active investing, but it also leaves you more time for other money-earning opportunities, including more active real estate investments if you so choose. 

How to Make Passive Income from Real Estate Investing

The most common method for real estate investing when considering the investment opportunity is from directly purchasing a property and renting it out to tenants.

1. Direct Ownership and Management (or with 3rd-Party)

With short-term rentals, you can often charge more on a nightly basis than you would with longer-term tenants and you don’t need to spend time chasing down rent. If you use a third party, such as Airbnb, for short-term rentals of a property you already own, you can earn money relatively passively. 

2. Short-Term Rentals

REITs allow you to invest in the real estate sector in a completely passive manner as you essentially own a share of the fund.  The rental payments pass through to REIT owners on a monthly, quarterly, or annual basis. 

3. Real Estate Investment Trusts (REITs)

Swipe up TO KNOW MORE ABOUT  How to Create Passive Income from Real Estate Investing [2021]