Over the past two weeks I have shared with you different ways to add passive income to your revenue. We’ve discussed writing books and creating online programs as passive income options in the last blog post. Another form of passive income that will take more time and money upfront is real estate.

By real estate, I specifically mean the ownership of rental properties. With real estate, after your initial investment, rental properties can give you passive income for a long time. Houses in great condition most often come with a large purchase price. Houses in not so great condition require an investment to get the house fixed up and made livable, in addition to the often low purchase price.

There are different ways to purchase rental properties. You can purchase foreclosures, tax liens, and through individuals that are selling their property directly. My first rental property was purchased on a tax lien for a little of nothing. My second rental property was a foreclosure. My third rental property was purchased directly from an individual that was a motivated seller. As you can see from my purchase history, there are different strategies to obtaining rental properties.

To get started, the first step is determination and the second step is to start saving for your first purchase. Get your pen and paper ready for note taking, because we are about to dive into the different ways you can buy in real estate.