If you’re here, you’re on the hunt for good ways to make cash on the side. And who wouldn’t, right? Everyone wants to earn extra money so we don’t have to live paycheck to paycheck. I feel you; I’ve been there, trying one hustle idea after another just to earn extra income to finance my college years.
Thanks to those hustle ideas, I was able to earn extra money during my spare time, helping me finish my three degrees—a Bachelor’s in Business and two associate degrees in Radiologic Technology and Liberal Arts. However, the hustle ideas I knew before require physical activities, some of which are labor-intensive. No one had taught me how to earn passive income.
That’s why I’m here. I’ve created a website like this to help you gain financial success, especially on the many good ways to make cash on the side. For today, let me help you learn how to earn extra cash online or passive income through real estate while maximizing your creative skills without going through the hardships I’ve experienced.
The best about this? You don’t need to quit your day job just yet.
6 Good Ways to Make Cash on the Side Through Real Estate
With creativity and effort, you can pad your pockets and finally afford to pay off loans, bills, and credit cards or be in a position to help family and friends. In my case, I paid off about $90,000 in student loans and credit card debt. The greatest? I was able to help my parents remodel their house.
But, hey, this is not a rich-quick scheme, folks. I don’t want to give you false hopes that you can earn a thousand dollars in one night when you read my articles. Although that’s possible, it requires dedication and long nights, from learning an online course to entering entrepreneurship. For now, let’s explore how real estate can help us earn extra cash.
1. Start with Rental Properties
Want to earn some serious passive income? That’s what Robert Kiyosaki—the real estate guru, has repeatedly said in his podcasts and books. Rental properties might be your ticket to earn extra income, leading to passive income.
But before you start dreaming of all that extra cash flowing in, there are a few things you need to know.
Finding the Right Rental Property
Location, location, location. That’s the name of the game when it comes to rental properties. You want to find a property in a desirable area with strong rental demand. Think of places with good schools, low crime rates, and plenty of amenities nearby.
And don’t forget to consider the property’s condition. Is it move-in ready, or will it need some work? Factor in any necessary repairs or upgrades to ensure it will be attractive to tenants and profitable for you.
Financing Your Rental Property
Financing a rental property differs from funding a primary residence. Expect a larger down payment and higher interest rates. You’ve got a few options here: conventional mortgages, FHA loans, or partnering with investors.
Be prepared to provide detailed financial information and a solid business plan to lenders. Remember to consider additional costs like property management, maintenance, and vacancies when calculating your potential return on investment.
Managing Your Rental Property
Being a landlord isn’t all about collecting rent checks and putting your feet up. It involves finding and screening tenants, handling maintenance and repairs, and ensuring timely rent collection.
If you own multiple properties or live far from your rental, consider hiring a professional property management company to handle these tasks. It’ll cost you, but the peace of mind it can provide can be worth it.
Moreover, you must establish clear lease agreements and communicate regularly with tenants to build positive relationships and minimize turnover. You must also know the latest landlord-tenant laws and regulations to avoid liabilities while ensuring compliance and protecting your investment.
2. Go for Airbnb and Vacation Rentals
Want to earn some extra income without the long-term commitment of a traditional rental property? Airbnb offers one of the good ways to make cash on the side during your free time. Thus, you may want to consider vacation rentals as your ticket to passive income.
Setting Up Your Airbnb or Vacation Rental
First things first, you need to create a welcoming and well-equipped space for guests. That way, you can enhance their experience, which can also help guests rate. Guests are more likely to give you a high rating or superb feedback, helping increase demand for your property. And, of course, if your rates start at a minimum, you can raise them once more vacationers want to rent your property.
You should also invest in quality furnishings, linens, and amenities to ensure a comfortable stay. If you want to get a deal on these, find a supplier selling online with discounts, especially if you’ll pay cash or purchase in bulk.
Since it could take a lot of money to polish your vacation rental, ensure that you have damage protection through an insurance policy. That way, you won’t lose money just in case.
After completing the furnishings:
- Take high-quality photos and write an engaging listing description.
- Use such to highlight your property’s unique features and local attractions.
- Show them how large and comfy the guest room is, how many spare rooms there are, or how near your property is to local restaurants where they can order via Uber Eats.
Now, for the rates, you have to set competitive rates based on your location, property type, and seasonal demand. Although the goal is to earn extra income, it should be proportional to the factors we’ve mentioned.
If you already have guests, remember to establish clear house rules. Communicating expectations with them will ensure a smooth experience for everyone.
Marketing Your Rental
You’ve got a great space; now it’s time to get the word out.
The secret weapon to all? Optimize your listing with relevant keywords and attractive photos to improve visibility on rental platforms.
Or use social media, such as TikTok, IG, Facebook Marketplace, and others, to let people know that your rental is ready. Social media is also a good place for targeted advertising as it can reach a broader audience and showcase what you offer.
For instance, if you have host liability insurance, let potential guests know. Doing so assures them that they’re protected and in good hands during their stay.
You can even establish a YouTube channel to promote your vacation rentals. When it prospers, this is one good way to earn extra cash on the side since you can earn money for every ad embedded in your YouTube videos.
As I’ve mentioned, user experience can help you gain high ratings. If you think your guests had a fantastic stay, encourage them to leave positive reviews to build trust and credibility with potential renters.
Consider offering special promotions, discounts, or a gift card you’ve won from online surveys or games—other good ways to make cash on the side using your smartphone. Especially during slower periods, such promotions can boost occupancy rates and generate additional income.
3. House Hack Your Lifestyle
What if I told you that you can get into real estate investing without a ton of cash to spare? Well, that’s true, my friend. While rentals require financing, house hacking doesn’t.
In house hacking—which is one of the good ways to make cash on the side in real estate investment—you’ll be purchasing a multi-unit property. And as real estate gurus say, a property is a liability if you only live in it. Hence, house hacking.
The strategy is to live in one unit and rent out the others to generate income and offset your living expenses. This allows you to build equity while minimizing your housing costs and potentially even generating positive cash flow.
What an effective way to earn extra! Or should I say, build wealth over time?
Benefits of House Hacking
Besides minimizing your housing costs, the benefits of house hacking are pretty sweet. By living in one unit and renting out the others, you can potentially live for free.
The rental income you generate can cover your mortgage payment, taxes, insurance, and other property-related costs. Oh, no more tightening your budget if you want to buy vintage at ThredUp and shop for the latest fashion at Poshmark. Well, why not splurge a bit extra on yourself if you have extra income to handle your bills?
To my readers, I wanted to swear on this part. It really brings back memories of when our utilities were shut off. Back then, we were living dirt poor; my parents couldn’t afford to pay our bills. Imagine we had to endure the Buffalo, NY winters if utilities were shut off—lots of candles barely keeping the cold at bay.
Although those are decades ago, I couldn’t help but think, “What if my parents knew how to house hack? Could our lives be better by then?” But those years are long gone, and you can avoid that situation with these life hacks.
Plus, house hacking allows you to gain hands-on experience as a landlord and property manager, preparing you for future investments. And while you’re at it, don’t forget to establish a YouTube channel where you can tutor online via your videos on how other people can also start with real estate investments.
By the way, I regularly upload videos on my YouTube channel if you want to watch financial tips so you can have more time while earning—what we’re all aiming for.
Going back, the best thing about house hacking is that, over time, you can acquire other real estate properties. How? Leverage the equity you build in the property to purchase additional rental properties and grow your portfolio.
4. Explore Real Estate Investment Trusts (REITs)
If you’re looking for other hustle options without the hassle of being a landlord, Real Estate Investment Trusts (REITs) might be the answer.
Imagine owning a piece of profitable property without the headaches of being a landlord. REITs offer that—they’re essentially the mutual funds of real estate investing.
Here’s the deal: REITs are companies that own and operate income-producing real estate. We’re talking shopping malls, apartment complexes, warehouses, office buildings, you name it.
By investing in a REIT, you’re essentially becoming one of the shareholders in a portfolio of real estate assets. The beauty of it? REITs distribute dividends coming from at least 90% of their taxable income to shareholders as mandated by the law. Hello, passive income.
Types of REITs
Not all REITs are created equal. You’ve got your equity REITs that own and manage physical properties, mortgage REITs that invest in mortgages and mortgage-backed securities, and hybrid REITs that do a little bit of both.
Then, some REITs specialize in specific property types, such as residential, office, retail, healthcare, or industrial. It’s like a real estate buffet—pick your flavor.
Investing in REITs
Ready to jump on the REIT bandwagon? You can buy publicly traded REITs on major stock exchanges, just like any other stock. Or, if you’re feeling adventurous, you can explore non-traded REITs or REIT mutual funds and ETFs.
But hold your horses before you start investing your hard-earned cash. Take a close look at the REIT’s management team, financial stability, dividend history, and growth potential. And always remember the most important principle of investing: diversification is vital.
While REITs offer a tempting opportunity to earn extra cash and spread out your investments, they’re not without their drawbacks. When the economy slumps or interest rates rise, REIT performance can take a hit. And if a REIT slashes or halts its dividend payouts, your passive income could vanish quicker than water in the desert.
The key is to do your due diligence, start small, and gradually build your REIT portfolio as you gain confidence and experience. While doing so, you may want to learn from an online course offering the basics of real estate investment. You can visit sites like Coursera, Showcase IDX, and others that have reliable courses to help you navigate the real estate industry. Or join a focus group that tackles the intricacies of real estate to newbies.
5. Try Real Estate Crowdfunding
Another way to invest in high-value properties while you relax at home is real estate crowdfunding. Here, you can forget about dressing up or even leaving your living room to start earning in real estate. Moreover, it’s like having a front-row seat to the hottest real estate deals without any of the hassle.
Real estate crowdfunding platforms are gateways connecting real estate developers and companies with investors who want a piece of the real estate pie. These platforms let you browse and invest in a variety of real estate deals, from single-family fix-and-flips to massive apartment complexes.
Gone are the days when real estate investing was reserved for the wealthy elite. Crowdfunding has swung open the doors, inviting everyone to join the party.
You don’t need to drop a fortune on a single property anymore. Instead, you can invest smaller amounts, from $1,000 to $10,000, and spread your money across various projects. It’s like having a buffet of real estate options at your fingertips while you pet sit.
Pros and Cons of Real Estate Crowdfunding
Like any investment, real estate crowdfunding has its pros and cons. On the plus side, it offers a low barrier to entry, access to a wide range of investment opportunities, and the potential for attractive returns. Plus, you get to feel like a big-shot real estate mogul without having to put on a hard hat.
However, there are also some downsides to consider. Liquidity can be limited, as your money is typically tied up for several years. The success of your real estate investment hinges on the expertise of the real estate company or developer you’re backing. To counter this, due diligence is crucial.
Top Real Estate Crowdfunding Platforms
Dipping your toes into real estate crowdfunding? Fundrise might be your best bet, with low minimums and a variety of eREITs and eFunds to choose from. RealtyMogul and CrowdStreet are also worth a look for their diverse offerings and solid reputations.
No matter which platform you choose, you’ll be on your way to start making a more robust, more diversified portfolio.
However, when evaluating crowdfunding platforms, look at factors like investment minimums, fees, types of projects, and the platform’s experience and investor support. And remember, just because a platform advertises juicy returns doesn’t mean they’re guaranteed. Real estate is a risky business, so only invest what you can afford to lose.
6. Fix and Flip Properties
Want to express your creative side with a dash of entrepreneurship? Flipping properties may be your cup of tea! This lucrative hustle idea continues to attract creative minds who want to earn extra cash.
With this venture, you’ll purchase underpriced homes that need repair, renovate them, and sell them. But to maximize your returns, apply the “sell higher” mantra so you can earn profits.
Selecting the Right Property
The first step in this process is identifying potential properties that offer good value for money. Sites like Zillow or Realtor can be excellent resources for finding homes with high flip potential. And, of course, look for properties in areas with rising market values but purchase prices within your budget.
Budgeting and Financing Your Flip
Careful financial planning cannot be overstated; it’s crucial to assess all costs involved thoroughly—from acquisition and renovation expenses to holding costs and selling fees—ensuring they align with your budget constraints. For financing options, consider traditional loans, home equity lines of credit (HELOCs), or partnering with investors who share similar interests.
And don’t forego these:
- Social Media Marketing: Social media is the craze these days. So why not utilize platforms like Facebook Marketplace to enhance exposure when it’s time to sell significantly?
- Hiring Skilled Contractors: Although creativeness helps, hiring professionals will save time and possibly reduce overall project costs due to their expertise unless you possess substantial DIY skills.
- Paying Cash vs. Financing: If possible, paying cash might expedite the buying process and eliminate interest payments. On the other side, leveraging financing could increase ROI by allowing you to undertake multiple projects simultaneously.
Conclusion
Well, there you have it, folks: There are many good ways to make cash on the side that actually work. So, if you’re seeking ways to boost your income and secure financial stability without sacrificing your day job, real estate offers a plethora of opportunities.
From rental properties to Airbnb hosting, house hacking, REIT investing, fix-and-flip projects, and real estate crowdfunding, there’s a strategy suited to your preferences, skills, and financial goals.
However, to be successful in real estate, you need to be diligent, plan carefully, and learn continuously. It’s not a get-rich-quick scheme but a journey towards financial freedom and wealth accumulation. By leveraging your creativity, skills, and resources—on our site, you can navigate the complexities of the real estate market and turn it into a fun side gig or even a full-time career.
Remember, whether you’re paying off student loans, covering bills, or simply padding your pockets for extra spending, real estate can be a powerful tool for achieving your financial dreams. Let me know what you’re excited to venture in!
FAQs
What are other good ways to make cash on the side while investing in real estate?
Beyond traditional real estate investments, there are other good ways to make cash on the side that complement your property ventures. Engaging in these activities not only diversifies your income streams but also maximizes the utility of your assets and skills. We have compiled a list of this to save you some time, but here’s a rundown:
- Participate in Focus Groups or Online Surveys: Websites like Survey Junkie offer opportunities to earn money by sharing your opinion through surveys and focus groups. While this won’t make you rich, it’s a quick way to earn extra cash during your spare time without leaving home or waiting for your Airbnb guests to arrive.
- Establish a Pet-Sitting Business or Dog Walking Services: If you have a flexible schedule, start a pet-sitting business besides your rentals. You never know how many potential renters have pets. Or dog walk while scouting for properties you can fix and flip.
- Start Educational Tutoring and Lesson Plans Creation: If you excel in specific real estate industries, tutor online or create lesson plans. With education shifting more towards digital platforms, there’s significant demand for personalized tutoring sessions and high-quality educational content creators tackling the real estate business.
- Go with Digital Content Creation and Freelancing: After managing your properties, and you want to work more, you can create sponsored content on YouTube channels focusing on DIY renovations, interior design tips, or real estate advice—capitalizing on creative skills and expertise areas relevant to property investors.
- You can also become a freelancer specializing in graphic design and develop marketing materials for fellow investors needing professional branding assistance. What a way to spend your free time while waiting for that month to collect rental fees.
- If you’re into testing different things, being a user experience tester is a side hustle to earn extra money while being a real estate investor. User experience testers evaluate websites’ usability, which could include those related to real estate listings—a critical aspect of ensuring potential buyers’ satisfactory navigation experiences.
- Or, do voice-over work, as it offers another avenue for extra income; creating narrations for virtual property tours enhances listing attractiveness significantly.
These diverse options allow individuals engaged in real estate investments to not rely solely upon traditional methods but explore varied avenues for generating additional revenue—effectively making every moment count towards achieving financial goals.
How can I make an extra $1000 a month?
Focusing on freelancing, renting out a spare room, or starting a small online business can get you there. And why not do them all if you can, right?
How do I make money on the side ASAP?
Sell items you no longer need, take quick gigs on task apps, or join ride-sharing services. It’s fast and straightforward. While you’re at it, survey the location where you’re heading to see if it’s a potential real estate investment.
How can I make $1000 a week on the side?
Get into high-demand freelance skills like coding or graphic design. Alternatively, manage social media for businesses, primarily when related to real estate business, so that you can learn from it as well. Hitting two birds with one stone!
How to make an extra $2000 a month?
Mix it up with advanced freelancing, dropshipping businesses, and tutoring in your expertise area, as these are some of the good ways to make cash on the side. Diversity is critical here, but remember, the real estate business is one of them.
