Rental properties have a number of drawbacks and while poorly prepared investors risk their equity if they overpay on a property, the strong housing market suggests that with preparation, there are plenty of opportunities to be found.
Buying an investment property is a straightforward way to make money in the housing market. Buy a house and rent it to long-term tenants or invest in a multi-unit rental property. You could consider purchasing a vacation rental or a property that you can rent out for a short period.
A real estate investment trust (REIT) is a form of mutual fund which invests in real estate. A commercial property portfolio or other real estate assets are purchased using money raised from investors.