You can invest in real estate with little money by buying REITs or real estate ETFs for the price of a single share, using crowdfunding platforms, or house hacking with a low-down-payment mortgage. You do not need a 20% deposit and a rental property to get started.
Six ways to start, compared
| Method | Money needed | Effort | Easy to sell? |
|---|---|---|---|
| REITs | Price of one share | Very low | Yes |
| Real estate ETFs | Price of one share | Very low | Yes |
| Crowdfunding | Often $10 to $500 | Low | Usually no |
| House hacking | 3% to 5% down | High | No |
| Renting out a room | None if you own or sublet legally | Medium | n/a |
| Partnering | Varies | Medium | No |
1. REITs
A real estate investment trust owns property such as apartments, warehouses or data centers and pays most of its income to shareholders as dividends. You buy it like a stock. Read what a REIT is for how they work and how they are taxed.
2. Real estate ETFs
A REIT ETF holds dozens of REITs in one low-cost fund, which spreads your risk across sectors. See what an ETF is if you are new to funds.
3. Real estate crowdfunding
Online platforms pool money from many investors to buy or lend against property. Minimums can be very low, but your money is often locked in for years, fees vary and returns are not guaranteed. Some deals are open only to accredited investors.
4. House hacking
You buy a home, live in part of it and rent out the rest, for example a duplex or spare rooms. Owner-occupied loans allow small down payments: FHA loans from 3.5% and some conventional loans from 3%. The rent helps cover your mortgage. Check what you can afford with our home affordability guide and mortgage calculator.
5. Rent out space you already have
A spare room, garage or parking space can bring in income with no purchase at all. Check your lease, local rules and insurance first.
6. Partner with someone
One partner brings cash, the other finds and manages the deal. Put everything in writing: who pays what, who decides and how you split profits or losses.
Risks to know
- Property values and REIT prices can fall, especially when interest rates rise.
- Leverage magnifies losses as well as gains.
- Being a landlord means repairs, vacancies and difficult tenants.
- “No money down” courses and gurus are often the ones making the money.
Build an emergency fund before you take on a property.
- Live prices and sentiment on every ticker page
- Weekly email with your watchlist movers
- Price alerts on the stocks and coins you follow
Frequently asked questions
Can I invest in real estate with $100?
Yes, through REITs, real estate ETFs or some crowdfunding platforms.
Is a REIT as good as owning property?
It is easier and more diversified, but you do not control the property or use a mortgage to boost returns.
Is house hacking allowed with an FHA loan?
Yes, as long as you live in the property as your main home, usually for at least one year.
This article is general information, not financial or tax advice.
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