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One of the keys to building wealth is investing in income-producing assets. These assets make it possible to grow multiple income streams, and they can also serve as passive income sources that require little to no work on your part.
Regardless of whether you’re looking for financial freedom, a source of retirement income, or just looking for ways to grow your wealth faster while still working, income-generating assets should be a crucial part of your plan.
According to research done by Tom Corley, 65% of millionaires have at least three income streams (source). So if you want to join them in the ranks of millionaires, creating and developing multiple streams of income should be near the top of your list of priorities.
Income Producing Assets to Invest In
Let’s take a look at some of the most popular, practical, and realistic options for generating a steady income from your assets.
1. Dividend Stocks
The stock market is, of course, one of the most popular types of investments. Whether you prefer to purchase individual stocks or invest through mutual funds or ETFs, the stock market is a great way to build wealth.
Some companies share their profits with investors by paying dividends to shareholders. These dividends can be reinvested to buy more shares or received as cash. Many of the companies that consistently pay dividends to shareholders are huge, well-known brands that have been around for a very long time. As a result, these types of stocks tend to be less volatile than growth stocks or the stock market as a whole, and they’re excellent long-term buy-and-hold investments.
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Thanks to online brokerages and apps like Public.com, Robinhood, and M1 Finance, investing in dividend stocks is easy. All three of these investment apps allow you to purchase fractional shares, which means you can get started with as little as a few dollars. In addition, there are lists of dividend kings and dividend aristocrats you can use to find companies you want to invest in. These companies have a proven track record of consistently paying dividends to shareholders over a long period.
Although we’ll look at many different types of assets and investments throughout this article, investing in dividend stocks is possibly the easiest option for getting started. It also offers another significant advantage, liquidity. Many investments that generate passive income streams will tie up your money and not allow you to convert it to cash quickly. That’s fine for money you won’t need for a long time, but you can sell stocks whenever you decide, so you won’t have to worry about not being able to liquidate the investment.
Investing in dividend-paying stocks can be done on a small scale or a big scale. You can start small and gradually work your way up by continually adding to your investment.
Highlights of Dividend Stocks:
- The dividend yield can be reinvested or taken as cash
- Solid long-term investment
- Offers a high level of liquidity
- Very easy to get started and doesn’t require a significant upfront investment
2. Real Estate Crowdfunding
Real estate is an attractive investment to many people, but the hands-on nature of owning property and being a landlord prevents many people from getting started. Fortunately, there are ways to invest in real estate with or without owning property.
One of the easiest ways to get started with real estate investing is through crowdsourcing. Many different online platforms allow you to invest in real estate without owning or managing properties, making it an excellent option for many people.
Although a lot of different companies fall under the umbrella of real estate crowdfunding, there are a few different possibilities:
Investing in Individual Properties
Groundfloor is open to any investor, and you can get started with as little as $10. As an investor, you’ll be providing money for rehabbing and developing residential real estate. Most of the projects are short-term (6-12 months), and on average, you can earn about 10% annually, although the details vary depending on the specific real estate deals.
Arrived is somewhat similar to Groundfloor in that it’s open to any investor. You can get started with a small amount of money ($100), and you’ll be investing in individual properties. The difference is, Arrived is a platform for investing in rental properties. You’ll earn passive income without the need to manage the property or deal with tenants.
You’ll need to be an accredited investor to invest in individual properties through RealtyMogul, and the minimum investment is $25,000 – $35,000. However, these deals present substantial upside with the chance to earn an excellent return.
Investing in Portfolios
Some platforms allow you to invest in a portfolio of properties rather than a specific property. The most popular platform of this kind is Fundrise. Fundrise offers a few different portfolios you can choose from. The Starter portfolio allows investors to start with as little as a $10 initial investment. They also offer three Core portfolios (supplemental, balanced, and long-term growth) that each has a minimum investment of $5,000. The Core portfolios allow you to choose something that fits your needs more precisely than the Starter portfolio.
Investing with Fundrise is entirely hands-off. You don’t need to research or vet specific properties, as Fundrise will handle all those details. Instead, all you need to do is add money to your account to invest in Fundrise’s growing portfolio of income-generating properties.
One of the nice things about Fundrise is that investors can receive quarterly dividends as cash or have the dividends reinvested. You can change this setting easily at any time from your dashboard.
Getting Started: The easiest way to get started with real estate crowdfunding is to invest with Fundrise. You can sign up in just a few minutes (for as little as $10), and you don’t need to choose the projects. Instead, you’ll be investing in a portfolio. You can also see this article for more options: Real Estate Crowdfunding for Non-Accredited Investors.
Highlights of Real Estate Crowdfunding:
- An easy way to invest in real estate without owning or managing properties
- Options are available for accredited and non-accredited investors
- Invest in individual properties or portfolios of properties
- Get started for as little as $10
- Receive dividends as cash, or have them reinvested
REITs (real estate investment trusts) are another popular way to invest without owning and managing property. Instead, the REIT owns income-generating properties, and as an investor, you can get many of the benefits of owning real estate without the headaches.
There are a few different types of REITs available. Some focus on residential properties, while others focus on commercial properties. Some are publically traded, while others are private. Private REITs tend to be very illiquid, so it’s not an investment that you should make if there’s a chance you could need the money any time soon.
Some real estate crowdfunding platforms offer REITs. For example, RealtyMogul offers REITs with a $5,000 minimum investment that pays dividends monthly or quarterly. Fundrise‘s portfolio investments are eREITs, and they provide the same advantages as REITs.
Getting Started: You can invest in REITs in many different ways. If you already have a Vanguard or Fidelity account, you’ll be able to invest in many REITs. However, possibly the easiest way to get started is with Fundrise. Since you can start with as little as $10, it’s an ideal option for just about anyone.
Highlights of REITs:
- An easy way to invest in real estate without owning or managing properties
- There are many different types of REITs available
- Private REITs and non-traded REITs are illiquid and not ideal for short-term investors
- Start with as little as $10
4. Rental Properties
When you think about income-producing assets, real estate and specifically rental properties may be the first thing that comes to mind. Many millionaires have built their net worth by purchasing real estate properties that consistently generate rental income month after month.
A rental property could be a condo or townhouse, or it could be a single-family home. Additionally, multi-unit properties, like duplexes and apartment buildings can be incredibly lucrative for landlords.
Of course, the opportunity to own rental properties also comes with a lot of work and effort on your part. If you don’t want the responsibilities of being a landlord, you can outsource the property management to make it a more passive source of additional income. But you can maximize the cash flow and keep more of the money in your pocket if you’re willing to put in some sweat equity and manage the property on your own.
One of the nice things about owning rental properties is that it works on a small scale or a large scale. You can buy a single rental property to get started or just rent out your own house when you move instead of selling it.
A single rental property can produce some monthly cash flow, or you could scale up and purchase many different rental properties to grow your empire.
If you’re interested in rental properties but hesitant to take on the responsibility, you may be interested in Arrived. This platform allows you to invest in individual rental properties, but you won’t be responsible for managing the property or dealing with tenants. It’s a passive way to invest without the need to get actively involved in the real estate market, and you can get started with as little as $100.
Getting Started: Read How to Generate Income from Rental Property
Highlights of Rental Properties:
- Proven method for growing wealth used by many millionaires
- Can be done on a small scale or a large scale
- Requires a lot of work if you are managing the properties yourself
5. Short-Term Rentals
Instead of renting out a house or property to a tenant, you could focus on the short-term market for people who are traveling. This could involve turning your existing home into an income-generating asset by renting a single room or a unit, if the house has a separate unit.
Aside from renting out a room or a unit in your home, another option is to own a vacation home and rent it out. It’s possible to use the home for yourself and your family throughout the year and then rent it out when you’re not using it to make some money from this valuable asset.
You can make very good money with short-term rentals, but typically, there will be more work involved because you’ll be cleaning the room/unit and turning it over frequently.
While it’s possible to make money by purchasing a property for short-term rentals, probably the best (and lowest-risk) way to get started is to rent out a room or unit in your existing home. You may be able to start making money from your home with little-to-no upfront investment.
Getting Started: Read my interview with Riley about how to rent a room on Airbnb. It’s a great story about a couple turning their home into an income-generating asset.
Highlights of Short-Term Rentals:
- Rent a room or unit in your home or a vacation home
- Turn your unused space into income
- Requires work to clean the room/unit between tenants
Farmland may not be the sexiest or most exciting investment, but it’s certainly a solid option. Farmland has historically produced excellent investment returns with relatively low risk. The need for farmland will never go away, and the supply continues to decrease, which increases the value of the land.
By owning farmland, you can generate a relatively safe income by renting the land to farmers. You can also make money when you eventually sell the land after the value has increased.
Unlike many other investments, farmland typically experiences low volatility. However, the downside is that most farmland investments are illiquid.
While most people don’t have the means to purchase hundreds of acres of farmland, there are other ways to invest smaller amounts of money. For example, accredited investors can go through platforms like AcreTrader and FarmTogether, crowdfunding platforms for farmland. These are solid investments that typically come with 5-10 year timelines and can produce double-digit annual returns by the time the investment is complete.
Both AcreTrader and FarmTogether identify properties and farms that meet their requirements. Then, investors can purchase a share of ownership of that farm, which generates quarterly or yearly distributions from rental income. Investors also earn a percentage of the proceeds when the property sells.
Highlights of Farmland:
- Strong historical returns
- Low volatility and low correlation to the stock market
- Crowdfunding platforms are available for accredited investors
7. Peer-to-Peer Lending
If you’re interested in alternative investments, peer-to-peer lending (or P2P lending) could be a solid option. Platforms like Prosper and Lending Club allow investors and borrowers to match up and skip the bank. Borrowers typically get better deals than they could get through a bank (or maybe they couldn’t get approved by a traditional bank at all), and lenders are able to earn a decent interest rate by serving as the bank.
There’s definitely risk involved in peer-to-peer lending, but you’ll have the freedom to select the level of risk you’re willing to accept. Of course, higher risk means higher interest rates and (potentially) higher rewards.
Groundfloor is a peer-to-peer lending platform specifically for real estate investing. The yields you can earn from Groundfloor significantly exceed the typical returns from Prosper and Lending Club. Historically, Groundfloor has produced double-digit annual returns, on average, for investors. It’s also straightforward to get started by investing as little as $10.
Getting started: Getting started with peer-to-peer lending is easy. You’ll create an account at Groundfloor, and choose the projects you want to lend to. You can browse projects to see the projected annual return, remaining term, credit rating, and more. Then, all you need to do is fund your account with a transfer from your bank account and select the project(s) you want to invest in.
Highlights of Peer-to-Peer Lending:
- Choose the level of risk that you are willing to accept
- Get started with as little as $10
- Earn money as the borrowed money is paid back
Bonds can be a low-risk way to earn some income. When you purchase municipal bonds, you’re loaning money to the government. The bond will have a maturity date, and as long as you hold it until that maturity date, you’ll receive the amount you invested plus interest.
The return you’ll get from bonds will be lower than almost any other option covered in this article, but bonds are also lower in risk. Additionally, bonds are generally illiquid.
Aside from treasury bonds, another option is to purchase business bonds. Instead of loaning money to the government, you’ll be lending money to businesses. Worthy Bonds allows investors to buy bonds for as little as $10. The bonds pay a fixed interest rate of 5%. The bonds are typically secured by inventory or accounts receivable, helping to reduce the risk for investors.
Getting Started: Create an account with Worthy Bonds, and you can easily purchase bonds for $10 increments.
Highlights of Bonds:
- Government bonds are a low-risk investment
- The return on your investment with government bonds will be low, but it’s safe
- Business bonds, like Worthy Bonds, offer better returns than government bonds but also come with slightly more risk
9. Low-Maintenance Business
Owning a business can be a great way to generate income, and some types of businesses tend to be low-maintenance. These businesses can be ideal for producing extra income without interfering too much with your existing life or job.
While there are a lot of different possibilities (see this list of low maintenance businesses for plenty of ideas), here are a few common choices:
- Vending machines
- Car washes
- Storage facilities
These types of businesses aren’t highly dependent on the owner or employees to function. Of course, there will be some work involved, but they can be more passive than many other types of businesses.
Some types of franchises could also fall into this category, especially if you own the business and hire others to manage it.
These types of businesses are excellent assets because they can produce steady cash flow for the owner.
Getting started: You could either buy an existing business or create your own. Options like laundromats, car washes, and storage facilities will require land or a storefront, so you must lease or buy the appropriate land or facility. A vending machine business is easier to start because you can buy one machine, find a place to put it, and keep it stocked.
Highlights of Low-Maintenance Businesses:
- The goal is to own a business that runs with very little human involvement
- Ideally, the business will generate income for you mostly on autopilot
- You could grow and expand as you have success with your first one
10. Online Business
Another type of business that has the potential for passive income and an excellent return on investment is an online business. Although plenty of online businesses require a lot of work and effort to keep them moving forward, some other business models are better suited to generate income without turning into full-time jobs.
There are several different options, and it won’t be possible to cover them all in this article, but here are some of the top choices for generating somewhat passive income with an online business:
Buy Existing Websites and Blogs
A lot of work and effort goes into building a profitable and successful website, but you can skip that stage by purchasing an established online business that’s already profitable. Of course, you’ll need some capital to invest, but it can be an excellent investment that outperforms more traditional investments in the right situation. In addition, once you purchase the website/business, you could outsource any work you’re not willing or able to do on your own.
Some websites and online businesses require a lot more ongoing attention than others. If your goal is to own an asset that generates revenue without becoming a full-time job, be sure to find out how much time is required to run the business before purchasing it.
It’s also important to note the buying an existing website or blog is a high-risk, high-reward investment. Many people who buy sites ultimately wind up failing. So don’t risk any money that you can’t afford to lose. It’s also a good idea to gain some experience building a site from scratch before buying existing sites, which will reduce your risk.
Start a Niche Website
While blogging gets a lot of attention as a great way to make money online, running a blog can be high maintenance. A much lower-maintenance alternative is to create a niche website instead.
A niche website is similar to a blog, but the content is highly focused on one particular topic. The main reason niche websites can be lower maintenance than blogs is that most of your traffic is likely to come from Google searches. So you won’t have many regular readers who visit your site frequently waiting for new content. If you’re busy and have no time to publish something new, it’s not a big deal with a niche site. Also, the types of content published on most niche websites are easier to outsource, so you may not be doing much of the work yourself.
Print on Demand
With a print-on-demand business, you can sell physical products without the need to have money tied up in inventory. Whether you’re selling t-shirts, books, or other types of products, the items will be printed for customers as they’re purchased.
Profit margins are lower with print-on-demand products because you won’t be getting discounts for buying products in bulk, but it allows for a low-maintenance business with no need to deal with an inventory.
Amazon’s Kindle Direct Publishing is the most popular program for selling e-books and print-on-demand paperback books.
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Getting Started: While buying an existing website is one way to get started, I highly recommend that you get some experience by creating your own website before investing in another site. Once you have some experience, you can think about buying a site. Niche websites are great for beginners. See this guide to building a niche site.
Highlights of Online Business:
- Some, but not all, types of online businesses can produce income without too much involvement on your part
- You can outsource the work to other people if you want to make it passive
- The income potential is unlimited
- Niche websites are a great starting point for beginners
11. Digital Products
Digital products can be perfect for generating ongoing income, although this approach does require upfront work to get things set up. However, if you have traffic to a website or blog and a digital product that appeals to those visitors, that’s an excellent formula for generating ongoing income.
There are many different types of products you could create and sell, including:
- Online courses
It will take some time to create the product, or you can hire someone else to do it for you. But evergreen products (products that sell for years to come) can produce income every month with minimal effort.
Digital products also offer excellent income potential, and you could even sell your business in the future for a lump sum.
Certain types of products like printables and e-books generally require minimal customer service, so they can be low maintenance going forward.
Getting Started: You could create and sell many different products, so the first step is to choose a product. You’ll also need to decide if you want to create your own website to sell the product or sell from an existing marketplace. For example, you could sell printables, planners, and other digital products from sites like Etsy. See our article on how to start an Etsy shop for detailed instructions.
Highlights of Digital Products:
- Evergreen products can generate income and profit for years to come
- Upfront work is required to create the product and generate traffic
- The product creation can be outsourced
- This is an ideal option for someone who already has a website
12. Creative Assets
Do you have creative skills? If so, it’s possible to use those talents and abilities to create assets that produce income for you. For example, you could sell or license digital photos, graphic design, or music and audio files.
There are many different ways to make money with photography, and one option is to sell or license your photos to businesses. For example, you could contribute to stock photo marketplaces like Shutterstock and Adobe Stock, sell prints at Etsy, or sell at your own website.
If you’re a graphic designer, you can create resources like icons, illustrations, logo templates, brochure templates, fonts, and much more. All of these products could be sold or licensed from stock marketplaces or your own site.
With some musical abilities, you could create audio files to sell or license on stock marketplaces or at your own site.
All of these approaches allow you to create assets that may continue to generate revenue for months or years to come. But, of course, there’s a lot of competition in these industries, so you’ll need something high-quality, or you’ll need to create your own site instead of relying on sales from major marketplaces where it will be harder to stand out.
One of the nice things about this option is that it could be ideal for monetizing a hobby. These types of creative outlets are among the best hobbies that make money, so they’re perfect for generating income on the side of a full-time job while allowing you to do something you enjoy.
Getting Started: The fastest and easiest way is to contribute your creative resources to major marketplaces like stock photo sites, Envato Market, or Creative Market. However, if you’re focused on maximizing your long-term income, it’s a good idea also to create a website to promote your products rather than relying exclusively on marketplaces.
Highlights of Creative Assets:
- Potential to generate ongoing revenue
- Marketplaces are the easiest place to get started, but they’re highly competitive
- Create a website to promote products without relying on marketplaces
Royalties are most commonly associated with music, although there are other possibilities (like art). Artists and musicians can make loads of money from royalties, but you don’t have to be an artist or musician to profit. Whoever owns royalty rights is the one who’ll be making money, and that presents an investment opportunity.
Investing in royalties is nothing new. Royalty rights have been bought and sold for a long time. But what is new is the accessibility for the average person. For example, Royalty Exchange is a website that allows musicians to raise money by selling royalty rights to their music.
If you’re looking for an alternative investment that’s capable of producing ongoing income, this could be a great option.
Getting Started: You can create an account at Royalty Exchange and start investing in royalties very quickly.
Highlights of Royalties:
- It’s possible to make a lot of ongoing income from royalties (it’s also possible that you’ll make nothing)
- Royalty Exchange makes it easy to get started
- Like any other investment, it’s a good idea to understand the investment before investing
14. Private Equity
While private equity investing can be a highly profitable option, it’s not available to most people, so I won’t cover too many details here. A private equity investment involves investing in privately-held companies that use the capital with the goal of rapid expansion and growth.
Private equity investments are available only to accredited investors, and in many cases, they will come with very high minimum investments. It’s a high-risk, high-reward investment. If you invest in the right company, you will see an incredible return. But you’re far more likely to lose your investment since such a high percentage of startups fail.
Getting Started: If you want to learn more, please see How to Invest in Private Equity.
Highlights of Private Equity:
- High risk, high reward investment in private companies
- Not a realistic option for most people (accredited investors only)
- Don’t invest money that you can’t afford to lose
A car is generally not an asset that will produce income. However, there are a few ways to change that.
The first option is to rent out your car when you’re not using it. Websites like Turo and Getaround allow you to list your car for rent, and you have complete control over when it’s available. Depending on when and how often you need the vehicle, you may be able to rent it out at times and still have use of it when you need it.
The second option is to place advertisements on your car. Companies like Wrapify and Carvertise allow you to make up to $400+ per month if you’re willing to let advertisers put ads on your vehicle. The most lucrative ads are full wraps that will cover your entire car.
Getting Started: Complete forms at Wrapify and Carvertise to see opportunities to put ads on your vehicle. If you’re interested in renting your car, simply create a profile and list it at either Turo or Getaround.
Highlights of Using Your Car for Income:
- You can generate income from an asset that typically does not produce income
- Renting out your car can be lucrative, but it may or may not fit with your schedule and your needs
- Placing ads on your car is an excellent option if you live and work in a high-traffic area
- If you’re renting out your car, be sure to consider the additional mileage and wear and tear
15. RV or Camper
Do you own an RV or camper? If so, you probably only use it at limited times throughout the year. Most RV and camper owners will use it only for a few weeks out of the year, and then it sits the rest of the time.
You can turn your RV or camper into an income-generating asset by renting it out. It may sound complicated, but it doesn’t have to be. You might even be able to rent it to people you know a few times per year. Even a few rentals could bring in enough money to help offset some of the expenses of owning it.
I’m not suggesting you go out and buy an RV to make money by renting it out (although many people have done this). But if you already have an RV or camper, you own an asset capable of producing some extra income for you. And if you’re considering purchasing one for your family, maybe this is a way to make it more affordable.
Highlights of Renting Out an RV or Camper:
- Turn a stagnant asset into an income-producing asset
- RVs and campers can bring in a significant amount of money from rentals
- There are a lot of people looking to rent RVs and campers
An annuity is an insurance product that requires you to make either a lump-sum payment or a series of scheduled payments. In return, you’ll receive regular disbursements (possibly monthly) in the future. The primary purpose of an annuity is to provide income after retirement.
Annuities can provide a fixed income, or they can be variable. Fixed annuities are invested in bonds and will provide lower returns, while variable annuities are likely to be invested in mutual funds to achieve a higher annual return.
Getting Started: To learn more about annuities, please read How Do I Know if Buying an Annuity is Right for Me?
Highlights of Annuities:
- There are a lot of varying opinions when it comes to annuities, but they can be a good choice in the right situation
- Be aware of fees involved
- Work with a trusted advisor (not a salesperson) before purchasing an annuity
If you own land, there are a few ways you can use it to make money. Of course, it depends on factors like the location, size of the land, and land characteristics. However, here are a few options that may be possible.
Rent It Out to Pet Owners
Sniffspot is a website that allows you to list your yard or land, and dog owners can pay to bring their dog. Of course, you’re more likely to succeed with this closer to urban areas where land is harder to come by.
Rent It Out to Farmers
Shared Earth helps to match landowners with farmers. You can list your land to make it more visible for farmers who might want to rent it. You can also rent it privately if you’re able to find a renter.
If you have a yard but not enough land for a farm, you may be able to rent it out to someone who wants a garden. You can list it at YardYum, and others will be able to find it when they are looking for a place to start a garden.
Rent It Out for Storage
There are a few different ways that you could rent out your land for storage. Many people who own RVs, campers, boats, and other large vehicles will need to rent a place to park them. You can make decent money by offering up some of your available land for this purpose. You can list your space on Stow It or rent it out privately.
If you have a large wooded lot, you may make some money by selling timber. Likewise, if you have the land, you can also plant and grow trees to sell timber in the future (you’ll need a lot of time and patience for the trees to grow).
If you don’t have enough land to grow large amounts of timber, you may grow smaller trees and plants on your land. This article talks about ten profitable types of trees that you can grow.
Highlights of Monetizing Your Land:
- If you have land, there are a lot of different ways to make money from it
- Your options will be influenced by the amount of land and the location
- Even with smaller amounts of land, you may be able to make money by renting out space for a garden or growing trees
19. Tax Liens
When a property owner or homeowner fails to pay taxes, a tax lien may be made against the property. The tax lien is a legal claim for the amount of unpaid taxes. A property with a lien cannot be sold or refinanced until the lien is paid.
Tax lien certificates are created when the lien is issued, and those certificates are auctioned off to the highest bidder. Savvy investors can purchase tax liens that allow them to collect payments and interest from the property owner.
The auctions may be in person or online, but bidding wars drive up the price and reduce the profit that can be made for the investor. Ideally, the investor will make a solid return by collecting payments, but foreclosure is always possible. It’s also possible that other liens could prevent the tax lien holder from taking ownership of the property in the event of a foreclosure.
Tax lien investing offers the potential to generate income, but it’s also a risky investment. If you decide to pursue it, you’ll need to dedicate time to understand the ins and outs of tax liens.
Getting Started: First, make sure you understand the details by reading this guide to investing in property tax liens.
Highlights of Tax Lien Investing:
- Potential to earn substantial returns
- High-risk investment
- Be sure you understand how tax liens work before investing
20. Mobile Homes
Earlier, we looked at the possibility of owning rental properties that generate consistent cash flow. A similar option is to purchase and rent mobile homes. You may also own the land where the mobile homes are located, or you could place it in a mobile home park and rent it out. Either way, it’s possible to generate a stable monthly income.
One of the reasons this is an appealing option is that the cost to get started is lower than buying a more traditional rental house or apartment building. The downside is the maintenance can be higher than a conventional home and that mobile homes depreciate instead of increasing in value like a single-family home.
Getting Started: Start by researching your area. Check the local mobile home parks to see if they allow rentals, and check the market to see what mobile homes are generating in monthly rental prices.
Highlights of Renting Mobile Homes:
- Lower cost to get started compared to renting a single-family home
- Potential for high return on investing
- The fundamentals are different than traditional rental properties since mobile homes depreciate in value
21. Safe Investments (Savings Accounts, Money Market Accounts, CDs)
While not the glamorous investments, conservative options like savings accounts, money markets, and certificates of deposit (CDs) are also appropriate in the right situation.
The problem with these investments and savings vehicles is that the interest rate is low, so the yields may not even keep up with inflation. However, the liquidity and lack of risk make these safe investments appropriate for many situations.
Getting Started: Online banks like CIT Bank have the best rates for savings accounts, money markets, and CDs.
Highlights of Safe Investments:
- You won’t get rich with these options, but they have a place in your investment portfolio
- Inflation may exceed the interest that you earn
- Savings accounts and money markets are ideal liquid assets for the money you may need to access quickly
Using your assets to produce multiple income streams is essential for building wealth and pursuing financial independence. Regardless of whether you’re looking to use your assets to generate money for living expenses or simply to grow your wealth faster, there are a lot of different possibilities.
While this is not an all-inclusive list, this does cover many of the most common options. So pick a few options that seem like a good fit for you and get started.