Are you searching for information on how to earn passive income through real estate in 2021?
Real estate is going to always be one of the best ways to earn passive income.
This is especially true in the 2020s, where we’ve already seen the stock market crash multiple times and despite those crashes, real estate continues to produce a consistent return on investment.
In this article, I’ll provide you with several tips that you can use for earning passive income from Real Estate in 2021 and beyond.
How To Earn Passive Income Through Real Estate In 2021
Fix And Rent Properties – Although many investors make money by ‘fixing and flipping’ rental properties, one of the best ways to make consistent passive income every month is by fixing and renting properties.
There are plenty of cities across the United States where you can invest in single-family and multi-family rental properties that may be neglected and are vacant, or not renting for market value.
You can find lots of affordable rental properties in states like Michigan, Arkansas, and Texas but, the key to success with investing in rental properties that are located out of state is to work with a local contractor, and a property management company, so that you can save the time and hassle of having to do the work yourself.
Invest In Self-Storage Units – Another excellent way to earn passive income from Real Estate in 2021 is to invest end self-storage units.
If you’ve never considered self-storage units before, you’ve been missing out on a huge opportunity because there are more than 50,000 of self-storage units across the United States.
Self-storage is always in demand because, in this day in age, most homes are being built smaller and most people have an overflow of items that they don’t want to get rid of.
Thankfully, with a self-storage unit, the average person can spend $50 a month on a garage sized space and have the ability to store their overflow items in a secure and safe environment.
Mobile Home Parks – Another ‘sleeper’ real estate investment opportunity is mobile home parks.
Mobile home parks are ideal because they often have long term tenants who like the convenience and flexibility of a traditional home, and the amenities of a multi-family community like a pool, conference room, and recreation area.
The average mobile home park also covers the water, sewer, and electrical cost so it’s possible for a renter to move right in and have all the comforts of a traditional home without a lot of responsibilities.
As of 2020, there were more than 153,000 mobile home parks located across the United States and this number is only expected to grow as an average mobile home park is easy to build and produces excellent passive income for investors, especially when they hire a property manager to manage their property.
Commercial Properties – Even though 2020 was a tough year for businesses due to covid-19 and lockdowns, most companies always need a place to call home and this is why commercial properties will always be in demand.
Yes, commercial properties have taken a huge hit over the last 12 months but, once the Covid-19 vaccine begins to be distributed across the United States, business will likely return to normal, and we will see commercial real estate rebound, especially in cities like New York and San Francisco.
If you’re planning on investing in commercial property to generate passive income, it’s best to consider either a traditional commercial property like a strip mall or, you may want to consider investing in a mixed-use development.
Mixed-use developments offer commercial properties on the ground floor and apartment units on the upper floors. The great thing about these properties is that once you invest in them, you can always count on having a consistent income coming in every month from your residential and commercial tenants.
Land Lots – When you invest in land, the key to success is to purchase a plot of land that’s in an up-and-coming area. This is essential because, if a city is growing, it’s highly likely that they’re going to need more housing in that location so it’s best to buy and hold land for that purpose or to purchase land for its timber or natural resources.
Vacation Rentals – Over the last five years, investors have been able to earn huge profits by listing their vacation homes on websites like Airbnb and VRBO but that’s since changed since Covid-19 since the virus been responsible for stopping most people from traveling and taking vacations as they once did.
Will vacation rentals return back to profitability like they were before the virus decimated the industry? It’s too soon to tell. Many analysts have said that it could be another year until we see travel and life get back to normal.
If you plan on investing in a vacation home in 2021, it’s best to do so with the intention of turning that property into a long-term rental until the vacation rental market comes back to life in the United States.
Invest In Multifamily Properties
Last of all, but most important, since this blog is focused on multifamily investing, the best way that I recommend that you can earn passive income from Real Estate in 2021 is to invest in a multi-family property.
The great thing about multi-family properties is that there are plenty of multifamily properties to choose from across the United States including apartment buildings, condominiums, and town homes.
If you plan on investing in your first multi-family property, you may want to consider investing in a small duplex and living in one of the units yourself. This will give you the ability to eliminate all your housing costs.
Let’s say that you want to invest in a large apartment building, if that’s the case, make sure that you hire a property manager right away because you don’t want to make the mistake of attempting to manage that property on your own.
Regardless if you plan on investing in an apartment, condo, or town home across the United States, make sure that the multifamily property that you purchase is located in an up-and-coming area that has a thriving economy, safe school districts, and plenty of things to see and do.
Contact Trier Capital
At Trier Capital, our team are experts at sourcing, acquiring, and managing multi-family properties across the United States.
If you’re serious about investing in your first multi-family property but you don’t want to make the jump due to the work involved, we can save you the time and hassle of investing in that property and doing Everything but yourself.
To learn more about the services that we can offer you, contact me today by calling 630-229-2383, or click here to connect with me online.