I have been starting to save up some money for a real estate investment that seems promising in the next couple of years. (I would love for it to be sooner, but it will take me a couple years to save up the necessary down payment). Because it will take me a little while to get to the point of financial security where I feel comfortable investing, I have been wondering if there are other areas or investments which might be more lucrative than real estate. I love the long term promise of real estate and the fact that it can be completely passive (with a real estate property manager), but I figured I owed it to myself to make sure that I have the best investment opportunity for passive income.
Here are some of the other passive income ideas that I have been considering:
Online Real Estate – I have been fairly successful with running websites in the past, and I would love to invest in another quality website if the opportunity presented itself. Yet, at the same time, I am looking for something that wouldn’t require me to closely monitor its success. While this is still on the table, I really am looking for something more passive than online real estate.
Construction Equipment - I have seen more and more people doing renovation projects lately and I can’t help but wonder where they get their big machinery. I am confident that it doesn’t make sense of everyone to buy their own heavy machinery, so that must mean rentals. If I were to buy some machinery, like Hitachi Construction Machinery, I could easily market it and rent it out at a standard fee per day. This would certainly have peak seasons and would a few minutes to process each rental, but would otherwise be pretty much passive. This sounds like a great option.
Inflatable Toys – Another popular item in the Northeast, especially for children’s birthdays, is the inflatable toys. I am thinking of the ‘bouncy castles’ or ball pits, etc. Many families in the town that I live in will spend $1,000-$2,000 (if not way more) every year. If I could buy a few different inflatables and create a pretty basic business, I could generate some nice steady income. I really like the potential growth that this idea has and if I can keep it pretty simple, I might be able to compete with some of the larger companies (as I wouldn’t be paying for employees).
Passive income is always difficult generate if you don’t have an initial investment to make. I understand this completely and that is why I am prioritizing saving up a certain amount in order to invest. While I am still considering other options, real estate still looks like a great option.
What source of passive income is most appealing to you? Why?