In an article for The College Investor by Alexa Mason, "Five Ways To Invest In Real Estate,"she outlines great ways for millennials to diversify their investment portfolios. Our favorite strategy mentioned, is buying rental property, which is a fantastic way to passively make income with consistent monthly cash flow. To do this, one needs to purchase a house that brings in higher rent in comparison to the mortgage, insurance, and property tax.
As with anything there are also downsides that are mentioned- which are easily mitigated by using a Turnkey firm. The first point made is that it requires a lot of money up front. This stresses the importance of being creative with your debt structure by leveraging the right amount of capital in 1 or 2 properties, to maximize your cash flow potential if unable to purchase the property with cash. Credit score and cost of acquiring debt is another factor to think about, because some people will have an easier time maximizing their returns than others. The second downside that she mentions is dealing with tenants. The turnkey route is perfect if you are worried about this aspect of investing in rental property, because it takes care of the management side of investing for you.
Mason also mentions other investment strategies in the article, such as, bigger real estate deals utilizing crowdfunding, and flipping houses- you can find more details of these strategies here: https://thecollegeinvestor.com/10414/ways-to-invest-in-real-estate/