Diversification is just as important as location

According to Scott Bennett, a real estate advisor with Wells Fargo Private Bank, “investing in a portfolio that’s diversified by property type, tenant mix and geography will greatly increase the probability that it will provide a stable and predictable stream of income over the long term”.

The more money you can invest in real estate, the bigger the passive income generated by your rental properties. Another way to make extra money from real estate is by investing in several real estate mutual funds, real estate investment trusts or crowdfunded rental properties. A diversified portfolio is crucial to preserving the overall risk-reward balance.