Rental properties can provide their owners with a nice supplemental income source. However, as the old saying goes, it takes money to make money. That's certainly true of rental properties. The initial investment can be over $50,000 when factoring in the down payment, closing costs, and any renovations or repairs needed to make the property ready to rent. That's not the kind of cash most beginning investors have lying around.

However, those starting on their investing journey do have alternative options. Investing in real estate investment trusts (REITs) can be a great way to collect passive income from real estate. Two excellent options for beginners to consider are Realty Income (NYSE: O) and Stag Industrial (NYSE: STAG).

Realty Income is a great REIT to own for dividend Income. It invests in properties that produce durable rental Income, enabling the REIT to pay a dependable monthly dividend. That's exactly what it has delivered over the years. The REIT has paid 637 consecutive monthly dividends over its 54-year history. That monthly payout is ideal for passive income seekers. 

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Source Fool.com