Written by: Edrian Blasquino
Quitting your 9-to-5 and living off passive income sounds like a dream, doesn’t it? You’re not alone in thinking real estate could be the way to make it happen. Nearly 90% of millionaires have real estate to thank for at least part of their wealth.
The trick, though, is finding the right real estate investment strategy that works for you. If you’re new to this, it can feel like there are a hundred ways to get started, and all of them come with risks.
8 Simple Ways to Get Into Real Estate
Whether you’re curious or ready to take action, here are eight beginner-friendly strategies to get you started.
1. Rent Out a Property
Buying a house or condo to rent out is one of the most straightforward ways to step into real estate. Here’s how it works:
- Buy a property.
- Rent it out to tenants.
- Rental income can cover your mortgage and other expenses.
Starting with single-family homes is a smart move. They’re easier to manage, and long-term tenants tend to be more reliable. Look for homes in areas that attract renters—places with good schools, lots of jobs, and public transportation options.
These factors make properties more appealing and help you keep the house rented consistently.
2. House Hack
Here’s a smart way to dive into real estate without a huge upfront investment: buy a small multi-unit property, such as a duplex or triplex; then occupy one unit and rent out the rest. The rent from tenants can help pay down your mortgage, significantly lowering or even eliminating your living expenses.
What makes this strategy so great? You’re both a landlord and a homeowner. That means you qualify for better loan terms while also earning rental income.
Plus, you’ll gain hands-on experience managing a property. Just make sure you’re comfortable with sharing your space—it’s not for everyone.
3. REITs
Not ready to own physical property? No problem. Real Estate Investment Trusts (REITs) let you invest in real estate without dealing with tenants or maintenance. With REITs, you buy shares like stocks, and they pay you a portion of the profits.
Here’s why they’re popular with beginners:
- You don’t need a huge amount of money to get started.
- They’re easy to buy and sell.
- You can earn income passively without lifting a finger.
If you’re looking for a low-commitment way to explore real estate, REITs might be your best bet.
4. Flip Houses
If you’re handy with tools—or have friends who are—flipping houses might be a great option. This approach entails purchasing a property that needs work, renovating it, and reselling it at a higher price to earn a profit.
But flipping isn’t as simple as TV shows make it seem. You’ll need to:
- Create a realistic budget for repairs.
- Research how much the home will be worth after renovations.
- Sell quickly to avoid costly delays.
Focus on houses needing cosmetic fixes rather than complete overhauls.
5. Short-Term Rentals (Airbnb)
Ever thought about hosting guests? Buying a property in a tourist-friendly area and listing it on Airbnb or similar platforms can be very profitable. Short-term rentals can bring in higher earnings compared to long-term leases, but they typically demand more time and effort to manage.
Here’s what you’ll need to manage:
- Bookings and guest communication.
- Cleaning and maintenance between stays.
- Local regulations (some cities have strict rules for short-term rentals).
If you love hosting and are up for the challenge, this strategy could work wonders for you.
6. Wholesale Deals
Wholesaling is all about finding great deals. You identify a property priced below market value, get it under contract, and sell that contract to another buyer for a fee.
Why beginners love wholesaling:
- It’s a fast way to make money if you’re good at spotting deals.
- It teaches you negotiation and market research skills.
This strategy requires hustle and networking. You’ll need connections with both sellers and investors to succeed.
7. Real Estate Crowdfunding
Crowdfunding platforms let you invest in real estate projects with other people. For example, you could contribute $1,000 toward building an apartment complex and share in the profits.
Why it’s worth a look:
- You can get started with small amounts.
- The risk is spread out among multiple investors.
- There’s no day-to-day management involved.
Just remember, crowdfunding investments are less flexible—you can’t cash out quickly. So consider this a long-term strategy.
8. Buying Land
Land might not look exciting at first, but it can be a goldmine if you choose wisely. Look for land in areas where businesses are expanding or people are moving. As the area grows, the value of your land could skyrocket.
What to check before buying:
- Is the land close to utilities and roads?
- What are the zoning restrictions?
- Are there plans for future development nearby?
It’s not a quick win, but for patient investors, it can lead to big rewards.
Taking the Leap
Real estate isn’t just for the super-rich, and it doesn’t have to be overwhelming. With the right approach, you can begin small and build over time. The key is taking that first step. Once you do, you’ll see how rewarding—and even enjoyable—real estate can be.