Investing in real estate can be an ideal method of generating passive income. Rental properties often produce more than enough cash to cover expenses. That provides their owners with attractive income streams.

While owning a rental property is technically a passive investment, they're often a lot of work. On the other hand, real estate investment trusts (REITs) are truly passive. You buy shares and then sit back and collect the dividend income. Camden Property Trust (NYSE: CPT), Realty Income (NYSE: O), and W. P. Carey (NYSE: WPC) are great REITs for those seeking to start earning more passive income this June.

Many beginning real estate investors buy rental housing, like single-family rental homes or small multifamily properties. While those investments can generate income, the cash flow tends to be lumpy (due to unexpected repairs and vacancies), and these investments take work (managing maintenance and tenants). It also requires a rather sizable up-front investment, including a downpayment, closing costs, and any needed repairs/renovations to make the property ready to rent.

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Source Fool.com