Perhaps the best approach to get excellent returns on your investment and achieve financial independence is through passive real estate investing. But the so-called “experts” who have turned most people off to the idea of investing won’t talk much about it. Thankfully, there are strategies for working individuals to generate respectable returns in real estate without devoting their entire waking day to it.

The classic buy-and-hold investing method of purchasing a property, renting it out, and receiving the monthly rent is a little different from passive real estate investing (although it can include this). When investing passively in real estate, you team up with more seasoned investors to make larger investments than you could on your own.

There Are Various Methods for Investing in Real Estate

So’s not necessary to buy apartment buildings and work as a part-time landlord in order to invest in real estate; there are other ways to achieve it. While there are many more options available, depending on your desired level of time and financial investment, that is undoubtedly one method to go about it.

Invest in Your Primary Residence

When most individuals refer to “investment properties,” they typically mean homes or other structures they don’t reside in. However, you should always consider your primary residence as your most important real estate investment.

When you rent a house, you have the option to relocate whenever you want and avoid having to pay for expensive repairs when they break. But only landlords gain financial success from their tenants.

It can be alluring to rent while you’re deciding when and where you want to settle down for young medical professionals who are just starting their professions. However, owning your own house, paying down your mortgage each month, and accumulating equity is always preferable.

Purchase a second home or vacation property

Do you have a favourite destination you like to visit every summer or for weekend getaways?

Consider purchasing a vacation home if your primary mortgage is about to expire or if you have the cash available to pay a second mortgage.

Depending on where you decide to purchase, you might be able to rent your secondary residence on a weekly or monthly basis. When you’re not using the property personally, you can still make passive income in this way.

Purchase a Home for an Adult Child

Do you have an adult child who is considering making a low or no down payment on their first home?

You might want to step in and buy a home for an adult child if they’re thinking about getting a mortgage with PMI.
You can expand your real estate holdings by purchasing a single-family home for an adult kid. without having to interact with unknown tenants.

We’ve observed a lot of doctor-parents purchase a home for their adult child, but with a proviso. that the kid will eventually pay the house off with monthly mortgage payments. However, some medical parents continue to have a landlord-tenant arrangement with their children. In this instance, the equity in the home becomes the parent’s profit when the house is sold.

Invest in Rental Real Estate

Apartment buildings don’t have to be huge complexes with numerous separate tenants living inside. Even a multifamily home that you rent to two or three different tenants can qualify as a rental property.

To keep a rental property in good condition, some effort is required. You’ll need to at the very least appoint a property manager and a maintenance team.

However, the quicker you can pay off the property and sell it for a profit, the more rent you can collect each month as payment toward the property’s cost. a profit that you can subsequently invest in another real estate property or another kind of investment.