Single-family homes: Investing in single-family homes is a straightforward entry point. These properties are easier to manage and can generate rental income while potentially appreciating in value over time.
Real estate investment trusts (REITs): REITs allow individuals to invest in real estate without directly owning property. Investors can buy shares in a company that owns and manages a portfolio of properties, receiving dividends from rental income and capital gains.
Condominiums: Condos can be a more affordable option when compared with single-family homes. They often come with lower maintenance responsibilities, as the condo association handles common area upkeep.
Duplexes and triplexes: These multi-family properties provide the opportunity to live in one unit while renting out the others. This can help offset mortgage costs and generate additional income.
Vacation rentals: Investing in properties in popular tourist destinations can be lucrative. Platforms like Airbnb make it easier to manage short-term rentals and maximize income during peak seasons.
House flipping: This involves buying undervalued properties, renovating them and selling them at a profit. While more hands-on and riskier, it can yield significant returns if done correctly.
Crowdfunding platforms: These platforms pool funds from multiple investors to finance real estate projects. This approach allows beginners to invest in larger commercial properties with relatively low capital.
Real estate mutual funds: Similar to REITs, real estate mutual funds invest in a variety of real estate assets. They provide diversification and professional management, making them a less hands-on option.