Can You Really Invest in Real Estate Without Much Money?
Yes. Owning a rental property outright is not the only way to invest in real estate. Several options let you get started with as little as $10, though each comes with different trade-offs in terms of liquidity, control, and expected returns.
This guide covers the most practical ways to invest in real estate when you do not have a large amount of capital to deploy.
1. Real Estate Investment Trusts (REITs)
A REIT is a company that owns income-producing real estate, such as apartment buildings, office towers, shopping centers, or warehouses. REITs trade on stock exchanges just like shares of Apple or Amazon, so you can buy as little as one share.
Minimum investment: The price of one share, often $20-$100.
How it works: REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. This makes them a source of regular income in addition to any price appreciation.
Pros: Highly liquid (you can sell your shares any time markets are open), diversified exposure to real estate, no landlord responsibilities.
Cons: You have no control over the properties, and share prices can drop significantly during market downturns even when the underlying real estate holds its value.
Popular publicly-traded REITs include Realty Income (O), Prologis (PLD), and Public Storage (PSA). You can buy them through any brokerage account.
2. Real Estate Crowdfunding Platforms
Crowdfunding platforms pool money from many investors to fund real estate deals. You can invest in specific properties or diversified real estate funds.
Fundrise
Fundrise is the most well-known retail real estate crowdfunding platform. You can start with $10 and invest in a diversified portfolio of commercial and residential properties. Fundrise manages everything, and you earn dividends plus potential appreciation.
Minimum investment: $10
Note: Fundrise investments are not publicly traded, so your money is locked up for the medium term. Early redemptions may be subject to a fee.
RealtyMogul
RealtyMogul offers both non-accredited and accredited investor options. Non-accredited investors can access two REITs. Accredited investors can participate in individual property deals.
Minimum investment: $5,000
Arrived
Arrived lets you invest in individual rental homes for as little as $100. You earn a share of the rental income and any appreciation when the property is sold.
Minimum investment: $100
3. House Hacking
House hacking means buying a property, living in one part of it, and renting out the rest to offset your mortgage. The most common approach is buying a small multifamily property (duplex, triplex, or fourplex) and living in one unit while renting the others.
Minimum investment: A standard down payment — as low as 3.5% with an FHA loan on a multifamily property where you will occupy one unit.
Why it works: Your tenants help cover your mortgage, reducing or eliminating your housing cost. You build equity and learn landlord basics with lower risk than a pure investment property.
Drawback: You need enough for a down payment and closing costs, and you have to be comfortable living near your tenants.
4. Buying a Rental Property With an FHA Loan
If you plan to occupy one unit of a 2-4 unit property, you can use an FHA loan to buy it with just 3.5% down. This is one of the most powerful entry points into real estate investing for people without a large down payment.
Example: A $300,000 duplex with 3.5% down requires $10,500. Your tenant in the other unit covers part of your mortgage payment each month.
Requirements: You must live in one unit for at least one year. FHA loans have mortgage insurance premiums that add to your monthly cost.
5. Wholesaling Real Estate
Wholesaling involves finding distressed properties, getting them under contract at a below-market price, and then assigning that contract to a buyer for a fee. You never actually purchase the property.
Minimum investment: Near zero, but you need time, hustle, and negotiation skills.
Reality check: Wholesaling is not passive income. It requires consistent effort to find deals and build a buyer network. It also requires knowledge of local laws, as some states regulate wholesaling heavily.
6. Real Estate Notes
When a property is sold with seller financing, the seller holds a mortgage note. These notes can be bought and sold. As the note buyer, you receive the monthly principal and interest payments from the borrower.
Minimum investment: Typically $10,000 or more, depending on the note.
Pros: Passive income, no property management.
Cons: Higher risk than buying a physical property through traditional channels. You need to carefully vet the underlying property and borrower.
Which Option Is Right for You?
Here is a simple guide based on how much you have to invest:
- Under $500: REITs through a brokerage or Fundrise.
- $500 to $5,000: Arrived (rental home shares) or Fundrise’s premium tiers.
- $5,000 to $20,000: RealtyMogul, or saving toward a house hack down payment.
- $20,000+: Down payment on a duplex or small multifamily using FHA financing.
The Bottom Line
You do not need to be wealthy to invest in real estate. REITs let you start for the price of a coffee. Crowdfunding platforms offer hands-off exposure to actual properties. And house hacking turns your living situation into an investment vehicle.
Start with what you can afford. The most important step is the first one.