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.
However, there are different ways to invest in real estate, they range from simple stock purchases to fixing and flipping houses and everything in between.
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.