Platforms like Arrived and Fundrise let investors buy shares in rental homes starting at $10, earning passive dividends and appreciation. No landlord headaches—management handles tenants. SEC regulation ensures transparency; 2025 yields average 7–12%.
Diversification spans markets: sunny Phoenix duplexes, urban Chicago lofts. Liquidity via secondary markets beats traditional real estate’s lockups. Risks: market dips, platform fees (1–2%). Mitigate with long horizons and REIT blends.
Newbies start via apps with educational quizzes. Tax perks include depreciation pass-throughs. Fractional ownership democratizes bricks-and-mortar wealth, turning renters into partial owners overnight.