You may have always been passionate about real estate: any house listed for sale catches your attention, and you find yourself eager to explore it—even if you’re not planning to move. You enjoy watching home-hunting, renovation, and flipping shows, and you constantly wonder whether you could dive into real estate investing yourself. But reality often sets in quickly, as owning a property or renovating one for resale doesn’t seem easy at all.
Still, despite these challenges, real estate investing is far from out of reach. There are many ways to get started—more than what a TV show on a niche channel like HGTV might suggest. GOBankingRates spoke with a group of experts to rank different real estate investment methods from the easiest to the most demanding.
1. Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts are considered an ideal option for beginners looking to enter the world of real estate. At their core, REITs are companies that own and manage income-generating properties such as offices, apartment complexes, hotels, resorts, warehouses, and even shopping malls. This type of investment is a relatively easy way to get started and also helps diversify your investment portfolio.
2. Investing Through “House Hacking”
Although the term “house hacking” may sound like the name of an exciting entertainment show, it is actually one of the most common ways to generate income from your primary residence. The concept involves purchasing a multi-unit property, living in one unit, and renting out the others to cover a large portion of your mortgage costs.
Brett Johnson, owner of New Era Home Buyers, explains that this method allows owners to live in their property while using rental income from the other units to reduce expenses and shoulder part of the mortgage burden, in addition to other housing-related costs.
3. Real Estate Wholesaling
Johnson describes real estate wholesaling as one of the simplest ways to enter the industry. In this approach, wholesalers identify properties being sold at very low prices and sign contracts to purchase them without making any repairs or changes. They then sell these contracts directly to other investors for a set fee.
Johnson says the entire process relies on an individual’s ability to analyze deals and negotiate successfully without actually taking on the risk of owning the property. It’s a strategy that requires little capital and is based largely on skill, insight, and deal-making savvy.
4. Vacation Home Rentals
Buying a vacation home and renting it out can seem like a profitable option if the location is attractive—such as mountain villages or scenic beaches. However, the idea is not as simple as it appears. You’ll need to handle unexpected maintenance issues, cleaning between bookings, and take full responsibility for marketing, managing reservations, and selecting guests.
5. Traditional Long-Term Home Rentals
If you’re interested in managing a property on a full-time basis, long-term home rentals can be a solid option—but they also come with many ongoing challenges and responsibilities. In addition to steady rental income, you’ll need to deal with routine maintenance, unexpected problems, rent collection, and potential difficulties with tenants.
Shar Herring, founder of Sell My House Idaho, explains that this level of responsibility requires patience, strong problem-solving skills, and the ability to handle daily challenges related to both clients and properties. Even if you hire a professional property manager to reduce the workload, the ultimate responsibility will still remain with you.
