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Ask a Real Estate Investor: What’s the Best Way To Make Passive Income? – GOBankingRates

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Everyone loves the idea of earning money with the least amount of effort, and real estate is one area where this is quite possible.

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Passive income doesn’t necessarily mean that you sit back and watch the money roll in without doing anything, though. According to Jon Sanborn, co-founder of Brotherly Love Real Estate in Philadelphia, “A passive income is a real estate strategy through which investors can generate earnings without being actively involved.”

It often means having some money to put down as an investment up front before that investment pays off in other ways. Here are 10 ways experts recommend earning passive income through real estate.

Invest in Self Storage Facilities

Storage facilities are in demand and are found almost everywhere in the U.S., Sanborn said, making it an excellent opportunity to bring in passive income.

“Around 39% of real estate investors vouch for this option and prefer it in comparison to rentals or vacation homes. Investing in Class A or B storage facilities by renting them out is a safe and efficient way to increase income.” 

Property Rehabilitation

If you’re handy at renovating and redecorating, property rehabilitation might be a great road for you. “Fixing and flipping properties requires a more active role but could be quite lucrative,” Sanborn explained.

Rent Part of Your Home

This might be an option if you’re not quite up for the level of work involved in an Airbnb situation (which requires playing the part of host, plus regular cleaning and maintenance), and you have a large dwelling with unused space. Sanborn recommends renting out “the other part [of your home] either as short-term rentals or as a studio rental.”

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Rent for Events

If a homeowner has access to a second home located in an appealing location like on a beach, then renting it out for events and festivals could rake in a lot of extra income, Sanborn said.

Another example of this comes from Marcia Socas, a real estate investor for over 20 years, who helped her son come up with a creative way to make passive income by renting a home in the Alabama town where he is attending college. After applying for a short-term rental license from the city, on game day weekends he can make as much as $1,250 per night by renting out his home.

“This is a passive way …….

Source: https://www.gobankingrates.com/investing/real-estate/ask-a-real-estate-investor-best-way-to-make-passive-income/

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