5 Ways to Become an Active or Passive Real Estate Investor

Julie S. says, "Hi, Laura! I recently discovered your weekly podcast and have already binged a ton of episodes and learned a lot—thanks for all you do! One of my New Year's resolutions is to be more mindful and strategic about my finances, and your podcast has been super helpful.

I would love it if you could podcast on the trend of buying a second home first, where you rent your primary residence and buy a second home for vacations or rent out. I've been considering this and wondering if your guidance, such as not spending more than 25-30% of your income on housing, would be different for an investment property. I would surpass that amount, so can I afford it? Also, I've heard that lenders don't like giving mortgages for investment properties as much as primary residences." 

Kimberly C. says, "I'm a young professional starting my financial journey, and I've loved learning from your podcasts! One of my financial goals is to make passive income. You mentioned that you own some rental properties. Can you share your journey with how you obtained your first rental property and any tips you have for someone who wants to invest in real estate?"

Thanks for your great real estate questions, Julie and Kimberly. This post will answer them and review five ways you can invest in real estate actively or passively. Creating an additional income stream from real estate doesn't have to be difficult, time-consuming, or require special knowledge. Sound interesting? Keep reading.

5 Money Resolutions You Should Set for 2022

Real estate is a unique asset because it gives you a place to live or vacation and the opportunity for investment growth through price appreciation and income. That's why every investor should have some amount of real estate in their portfolio.

But if you think you have to shell out a lot of money to buy property, you may be surprised that there are ways to own it without a significant investment of money or time. Here are five ways to become an active or passive real estate investor.

1. Own...

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