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You do not need to be rich to invest in real estate. Many people start with a few hundred dollars. The key is knowing which path fits your budget.
This guide covers five proven ways to invest in real estate with little money. Rates and figures are as of May 2026.
1. Buy REITs (Real Estate Investment Trusts)
A REIT is a company that owns real estate. You buy shares just like a stock. The company collects rent and pays you dividends.
You can buy a REIT with as little as $1 through apps like Fidelity or Schwab. There is no property management. No repairs. No tenants calling you at midnight.
Public REITs have averaged 8% to 12% annual returns over the long term. They are liquid too — you can sell shares any day the market is open.
Popular REIT types:
- Equity REITs — own physical properties
- Mortgage REITs — lend money to real estate owners
- Hybrid REITs — do both
To find where to buy REITs, see our list of the best investment apps for beginners.
2. Use Real Estate Crowdfunding
Crowdfunding platforms pool money from many small investors to buy properties. You get a share of the profits.
Top platforms in 2026:
- Fundrise — Start with $10. Open to non-accredited investors. Average returns: 8% to 12%.
- RealtyMogul — Start with $5,000. Mix of commercial and residential deals.
- Arrived — Buy shares of individual rental homes starting at $100.
- Groundfloor — Short-term real estate loans. Start with $10. Available to all investors.
Most platforms lock your money for 3 to 5 years. Do not invest money you need soon.
3. Try House Hacking
House hacking means buying a small property, living in one part, and renting out the rest. Your tenants help pay your mortgage.
A common way: Buy a duplex with an FHA loan. You need just 3.5% down. Live in one unit. Rent the other. Your rental income can cover most or all of your mortgage payment.
Check out our article on FHA loan requirements for 2026 to see if you qualify.
4. Wholesale Real Estate
Wholesaling means finding a property at a discount, putting it under contract, and then selling that contract to another buyer for a fee. You never actually buy the property.
Startup cost: near zero. You need time to find deals and a network of cash buyers. Typical assignment fee: $5,000 to $20,000 per deal. This is active work, not passive income.
5. Use a Rental Property Calculator
Before you buy any rental property, run the numbers. A good deal should earn at least 1% of the purchase price in monthly rent (the 1% rule).
Example: A $150,000 property should rent for at least $1,500 per month. Factor in vacancy, maintenance, insurance, and property management fees.
Also know your expected cash-on-cash return. Divide your annual cash flow by your total cash invested. Aim for 8% or higher.
Our financial planning guide can help you decide how much of your portfolio to put into real estate.
Which Path Is Right for You?
Less than $1,000: Start with REITs or Fundrise. Low-cost and low-maintenance.
$1,000 to $10,000: Look at Arrived or RealtyMogul for crowdfunding. Start saving toward a house hack down payment.
$20,000 or more: A house hack with an FHA loan could be your fastest path to real estate wealth.
Also consider tax implications. Capital gains on real estate sales may affect your taxes. See our guide on capital gains tax in 2026.
Frequently Asked Questions
Can you invest in real estate with $500?
Yes. Platforms like Fundrise let you start with just $10. REITs on stock apps also let you buy in for the price of one share.
What is the easiest way to invest in real estate with little money?
REITs are the easiest way. You buy shares like a stock, collect dividends, and never deal with tenants or repairs.
Is real estate crowdfunding safe?
It carries risk like any investment. Platforms are regulated, but returns are not guaranteed. Always read the offering details before you invest.
What is house hacking?
House hacking means buying a small multi-unit property, living in one unit, and renting out the others. Your tenants help pay your mortgage.
How much money do I need to start investing in real estate?
With REITs and crowdfunding, you can start with as little as $10 to $500. A rental property typically requires a 3.5% to 20% down payment.