If you’re thinking about getting started with Portland real estate investing, you may be wondering if it’s possible for you to earn passive income from real estate investing during a recession?
This is a natural question to ask because anyone who follows the news can see that the economy is in recession that’s going to continue for the near future.
Thankfully, it’s still possible to earn passive income from real estate investing especially if you diversify your real estate investments.
In this article I will share with you several tips on what are the best real estate investments that will generate passive income in 2021 and beyond.
Best Ways To Earn Passive Income From Real Estate In 2021-2022
House Hacking – The first way to earn passive income from Real Estate in 2021 is by house hacking or renting out a room in a house that you already own.
Before getting started with house hacking, you have to ask yourself if you’re ready to live with somebody else and be a landlord. This is important because you’re going to be faced with having to collect rent and ensure that all the services that your tenant expects to have will be available to them every month.
If your answer to the question of if you’re ready to come to a landlord is yes, then you shouldn’t hesitate to get started with house hacking because, depending upon where you live, it may be possible for you to earn an extra $600 or more per month just by renting out one of the rooms in your home.
Invest In Mobile Home Parks – Another excellent way to earn passive income from real estate investing in 2021 is to invest in a mobile home park.
Mobile home parks are ideal for real estate investing because they are typically attractive to tenants who are looking for the convenience and flexibility of living in a home, while also offering basic multifamily style amenities at the same time.
What’s ideal about investing in mobile home parks is that they are available all over the United States, and its quite possible to find many affordable mobile home parks nationwide, that are available for sale right now for less than the cost of a typical single-family home in California.
The key to success with investing in a mobile home park is to offer your tenants tons of value. This means that instead of letting the trailers remain in a state of decay, you should hire an on-site maintenance staff, along with a property management company, to professionally manage the park for you.
Invest In Self-Storage – Besides mobile home parks, self-storage is another excellent way to earn passive income in 2021, even in the midst of an economic recession.
The reason why self-storage is an excellent real estate investment for passive income is that in today’s world almost everyone has an overflow of “stuff” that they don’t want to sell, and if they have a lack of space the only other solution is to store those items off-site.
Self-storage facilities can be found in most cities across the United States and, it’s quite possible to earn an average of $55 to $100 (or more), per unit, per month in passive income.
The key to success with earning passive income from Self-Storage is to hire someone to manage that facility for you, It’s also important to invest heavily in security and monitoring because, when somebody rents a self-storage unit from you, you want them to have confidence in the safety and security of the facility that they are renting.
Invest In A Mixed-Use Development – Another excellent way to earn passive income from real estate investing in 2021 is to invest in mixed-use development.
Mixed-use developments are a deal because these facilities typically have space for commercial tenants on the ground floor, while having space for residential tenants on the upper floors.
With a mixed-use development, you can have confidence in the passive income you’re earning from this investment because, should you have a difficult time finding a new commercial tenant for the building, your residential tenants will continue to pay their rent on time every month.
Invest In Single-Family Rentals – Another way to earn passive income from real estate investing is to invest in single-family rentals.
Although single-family rentals are talked about a lot by investors, they can often be difficult to rent, and a single-family rental can only generate one source of income. Once the property is vacant, the owner is left with having to cover their mortgage and other expenses from the property every month.
Invest In Multifamily Properties
Last of all, but most important, another great way to earn passive income from real estate investing is to invest in multifamily properties.
The biggest reason why I prefer multi-family properties over single-family is that there’s more of a variety of properties to choose from.
With multifamily, it’s possible to invest in condominiums, duplexes, triplexes, and apartments.
Before investing in a multi-family property, especially during a recession, your goal should be to focus on due diligence. This means taking your time to thoroughly research the area where the property is located so that you can learn more about what’s happening with the local economy and crime rate before you decide to invest there.
As with other real estate investments that I’ve mentioned in this article, the key to success with owning a multi-family property is to immediately hire a property manager to professionally manage your multifamily property for you.
Note – You can also invest in single family properties as well but multifamily properties are ideal, especially if your goal is to build an investment portfolio that provides you with cashflow that you can depend on, even during the pandemic and recession.
Contact Rent Portland Homes
At Rent Portland Homes, we specialize in local property management and can provide you with all of the services that you need for managing your Portland area investment properties.
To learn more about the services that we can offer you, contact us today by clicking here.