Passive Income

• The ownership of investment real estate could provide a lucrative stream of regular earnings. Investors will often purchase real estate to reap certain tax benefits, monthly cash flow opportunities and for capital appreciation. Passive features such as rental income and capital appreciation allow an investor to receive payments from tenants that contribute toward paying off his mortgage as the property appreciates in value. Passive investments can enable investors to earn various amounts of monthly real estate income.
  
  

Residential Properties

• Renting residential properties such as single-family homes, townhomes and duplexes may allow investors to generate real estate income. As a landlord, you can advertise the availability of properties that you want to rent. Generally, the rental amount should exceed your expenses to net a monthly income. For a percentage of your real estate income, a management company could assist you with property management duties, such as marketing your properties and rental collections.
  
  

Commercial Properties

• Some real estate investors generate handsome profits from apartments and other income-producing property types, such as office buildings, warehouses, hotels, gas stations and self-storage facilities. Commercial properties can enable owners to rent or operate their establishments for the benefit of real estate income opportunities. Lucrative opportunities may emerge due to increased real estate values and property rent increases. Commercial real estate could allow an investor to seek short-term or long-term income opportunities. Investors who prefer long-term opportunities will typically plan to buy and hold income-producing properties.
  
  

Real Estate Investment Trusts

• Real estate investment trusts, or REITS, allow investors to participate in various types of funds that target real estate growth opportunities. Most real estate investment trusts are used to pool resources together for the purpose of acquiring rental real estate. Investors who participate in REITS receive a percentage of the rental income. The Internal Revenue Service requires companies that operate as REITS to distribute the majority of taxable income to shareholders.