Want to Invest in the Real Estate Market With Less Stress? Try This REIT.
Investing in rental real estate can be a profitable venture, but it's not necessarily the most accessible or passive way to generate income. To start, you need a significant sum of money for a down payment on a property. Then you have to manage the property, doing things like advertising the rental, screening tenants, coordinating repairs, communicating with tenants, maintaining the property, and dealing with evictions if they happen.
I have owned rentals and the past and am in no way discouraging investors from pursuing this avenue. However, if you don't have tens of thousands of dollars to invest in a rental property right now or simply want exposure to the time-tested rental real estate industry without the stress, here's why you should consider investing in Invitation Homes (NYSE: INVH).
Real estate investment trusts (REITs) were invented in the 1960s to help make the real estate market more accessible for everyday investors. These unique stocks are required to earn the majority of their income from real estate properties like rental homes or from real estate equities like mortgages. They are also required to pay at least 90% of their taxable income to shareholders in the form of dividends, making them a great passive income investment without the stress and hassle of owning or managing real estate personally.
Source Fool.com
