The operating company receives a portion of the rent and manages the property. This means the company finds new tenants and takes care of all maintenance. REIGs often will retain some of the rent to pay down debt and meet other obligations if some units are vacant.Flipping housesFlipping houses is the most hands-on, challenging, and risky of these options, but it can be the most profitable. The two most common ways to flip houses are to buy, repair, and sell, or buy, rehab, rent, refinance, and repeat (). In either case, the key is to limit your initial investment with a low down payment and keep renovation costs low.Let’s say you buy a house for $250,000 with 20% down, or $50,000. You spend another $50,000 on renovations and then sell the house for $400,000. You use the $400,000 to pay off the $200,000 loan and then have $100,000 in profit on a $100,000 investment. It’s a great return if you can get it.The problem is that you usually can’t. Housing markets can flip from a sellers' market to a buyers' market on a dime, which can affect your sales price. Meanwhile, keeping renovation costs to a minimum may sound easy, but it may be nearly impossible if you don’t have direct construction experience. Inflation and delays can push costs through the roof.If you flip houses, do extensive due diligence. Also, make sure to build in a big cushion in case something doesn't go according to plan (which is usually the case).Real estate fundsReal estate fundsReal estate funds invest in REITs and real estate operating companies (REOCs). REOCs are like REITs, but they don’t have to pay dividends, so they grow much faster.Real estate or are the simplest ways to invest in real estate. Many have very low minimum investments (for example, Fundrise lets you invest in its real estate funds for only $10, while many cost less than $100 per share). The fund's managers pick real estate stocks or property investments that generate income, allowing you to passively collect dividend income.Even if you’re a stocks-only investor, consider using real estate funds to get while keeping the liquidity profile you’re used to. Investors have many high-quality REIT ETF options.Should you invest?Why should you invest in real estate?Here are a few pros and cons of investing in real estate:, Created by Real Estate Investors for Real Estate Investors. You hold the key to your own real estate investing success, but we can help you get there faster! With MyHouseDeals, find the best discounted investment property deals, grow your networking power, and learn cutting-edge strategy from the most successful investors in the nation., The easiest way to begin investing in real estate is to buy shares of a REIT or real estate fund. You can get started for only $10 in some cases (Fundrise has a $10 minimum investment)..