Owning a Property
Owning a property is the least passive method out of the three common ways to passively invest in real estate. How passive you are able to be honestly depends on how much money you have to outsource work. When buying a property to make money off of, you want to buy it for as cheap as you can. Then, you can make some renovations or upgrades and sell or rent it out to turn a profit on it.
Remodeling is where is gets tricky though. If you are not willing to do some work yourself, or do not have the experience to, you will have to contract the work out. This keeps the investment passive for you, but can get expensive very quickly. Once the property is ready to be moved into, there is the management of the property to be concerned with. You can absolutely hire someone to manage the property, but again that takes out of your profit.
While this may be the least passive way to invest in real estate, it is one of the most traditional methods of investing. Many people are able to successfully supplement their income, or earn their full income from renting out or flipping properties. You are also able to make this process as passive as you want if you have the funds to do so.