What is an investment property?

An investment property is real estate purchased to generate passive income (earn a return on the investment) through rental income or appreciation. Investment properties are typically purchased by a single investor or a pair or group of real estate investors. There are several types of investment properties investors can buy to earn passive income.

What are the different types of investment property?

The most common type of investment property is residential real estate. The properties are for occupancy, like single-family homes, condominiums and apartments. Real estate investors tend to prefer residential real estate because, once you secure a high-value property and long-term tenants live there, it can generate reliable income.

How to invest in real estate without owning physical property?

REITs and real estate platforms are two ways to invest in real estate without owning physical property. REITs are securities you purchase through a brokerage account, similar to investing in mutual funds. Online real estate platforms connect investors to real estate projects.