The 10 Best Ways to Make Money in Real Estate (Even If You’re Not a Full-Time Investor)

Stephanie Younger

Real estate has long been one of the most reliable ways to build wealth. Whether you're looking for passive income, quick profits, or long-term appreciation, the opportunities are broad—and you don't need to be a full-time investor to get started.

Here are 10 of the best ways to make money in real estate, ranked for accessibility, profitability, and long-term value.

1. Buy & Hold Rental Properties

This is the classic wealth-building strategy in real estate: purchase a property, rent it out, and let tenants pay down your mortgage while the property appreciates.

  • Why it works: Steady monthly cash flow, long-term equity gains, and strong tax advantages.

  • Best for: Investors who want passive income and a long-term growth play.

2. Short-Term Rentals (Airbnb, VRBO)

Renting out a home—or even a spare room—can generate higher returns than traditional leasing, especially in high-demand areas.

  • Why it works: Nightly rates often outperform monthly rents if managed well.

  • Best for: Owners in tourist-heavy areas or near event venues.

  • Note: Always check local laws—some cities in LA have strict short-term rental regulations.

3. Fix and Flip

Buy low, renovate smartly, and sell for a profit. This approach works best in appreciating markets and with a tight renovation budget.

  • Why it works: You force appreciation by improving the property’s condition.

  • Risk level: High—it requires capital, speed, and market knowledge.

  • Best for: Experienced investors or those with trusted contractor networks.

4. House Hacking

Live in one part of the property while renting out the rest—such as a duplex, a home with an ADU, or even extra bedrooms.

  • Why it works: Offsets your mortgage and helps build equity while reducing living costs.

  • Best for: First-time buyers or homeowners seeking financial flexibility.

5. Build an ADU (Accessory Dwelling Unit)

California has made it easier than ever to add a secondary unit to your property. This can serve as a rental, guest house, or even a future downsizing option.

  • Why it works: Adds livable square footage and a separate income stream.

  • Best for: Homeowners with space, the right zoning, and long-term plans.

6. Invest in REITs (Real Estate Investment Trusts)

Own shares of real estate portfolios—without the responsibilities of owning property.

  • Why it works: Offers passive income, diversification, and liquidity through the stock market.

  • Best for: Investors who want exposure to real estate without being landlords.

7. Wholesaling

Find undervalued properties, get them under contract, and assign the deal to another buyer for a profit—without ever owning the property.

  • Why it works: Requires little capital upfront and fast turnaround.

  • Best for: Strong negotiators with local market knowledge.

  • Caution: This strategy is legal in most states but not beginner-friendly or risk-free.

8. Pre-Construction and New Development

Buy into a project early and benefit from appreciation by the time it's built.

  • Why it works: Developers offer lower prices for early buyers, with potential gains by completion.

  • Best for: Buyers with capital who understand market trends and development timelines.

  • Risk: Values can fluctuate during the build process.

9. Join a Real Estate Syndication

Pool your money with other investors to buy larger properties—like apartment buildings or commercial centers—managed by professionals.

  • Why it works: Provides access to bigger deals without the need to be a landlord.

  • Best for: Accredited investors or those with $25,000+ to deploy passively.

10. Lease Option Strategy (Rent-to-Own)

Control a property through a lease agreement with the option to buy, while renting it out for positive cash flow.

  • Why it works: Generates income with minimal capital, and gives you the right to purchase at a locked-in price.

  • Best for: Creative investors comfortable with legal contracts and negotiation.

  • Complexity: High—requires careful documentation and execution.

Final Thoughts

You don’t need a massive portfolio—or even a real estate license—to start making money in real estate. Whether you're leveraging your own home, investing passively, or launching a side hustle, there's a strategy that fits your goals and risk profile.

Want help identifying the right entry point for your real estate journey? Contact us today for a personalized consultation and let’s turn your goals into action.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, legal, or tax advice. 

WORK WITH US

In 2023, the Stephanie Younger Group sold more homes than any other agent or team in the city of Los Angeles, and in 2024, was recognized as a top team in California by sales volume in the RealTrends The Thousand list.

Contact Us
Follow Us