A core idea here at 40 Plus Finance is taking control of your finances in all aspects, one of which is increasing your income. Whether it’s through working more hours, earning increased commissions, or taking a second “job”, it’s super important from the point of view of adding resiliency and stability to your finances.
One popular way to do this is to start a side-hustle.
Many people are looking for ways to make extra money because the pandemic has had a serious impact on household incomes. If you’re considering looking for a part-time job, or a lucrative side-hustle, real estate might be the perfect business to try.
This article will review a couple ways on how to make extra money in real estate and look at 20 different side hustles, both real estate and otherwise you can do in your spare time.
What Is a Real Estate Side Hustle?
A real estate side hustle is a gig, activity, business, or investment that brings in extra income from real estate while having another full-time ‘day job.’ Let’s dive into a few real estate side-hustles below.
9 Real Estate Side Hustles
There are many ways to get involved in the business of real estate, making it a great side hustle. There are eight side hustles relating to real estate that the reader can begin working on immediately after finishing the post.
1. REIT Investing
An REIT can be a good investment for those looking to make money from real estate without being a property owner or manager. As a shareholder in an REIT, you can benefit from the profits generated by the underlying real estate assets without having to deal with the day-to-day hassle of being a landlord. Publicly traded REITs can be bought and sold on exchanges like stocks and bonds, making them a good way to invest in different types of real estate in different parts of the United States. REITs with high dividend yields of 7% or more are mostly in the mortgage, commercial real estate, and healthcare industries.
While it’s not strictly a side hustle, since REITs can distribute income in the form of distributions, they can make for a great extra income source.
2. Single-Family Rental
One of the most traditional ways to make money from real estate today is buying and owning a single-family rental home. CoreLogic states that rent prices for single-family homes have increased drastically, with cities in the Sun Belt such as Miami, Phoenix, and Las Vegas witnessing year-over-year rent increases of 15% or more.
Single family rentals are a core part of our own personal financial freedom plan & generate extra income for us each month (in addition to all the other ways they earn income).
3. House Hacking
House hacking is taking – or hacking – part of a home you already occupy and renting it out to generate extra income. There are many ways a homeowner can earn extra money, such as renting out part of the garage or basement as storage space, finding a roommate, or pet sitting in the backyard.
One very common strategy is to purchase a duplex, live in one part of it, and rent out the other half. Essentially using the income from the other unit to pay for your own housing expenses.
4. Vacation Rental
In some areas, you can make a lot of money by renting out your primary residence as a short-term or vacation rental. Instead of spending money on an expensive hotel room, many people from out of town prefer to find a place to stay where they can experience life as a local.
One key advantage here is the extra income possibility of renting out that vacation rental while you are not using it.
5. Rental Arbitrage
Rental arbitrage is a variation on the “buy low, sell high” real estate investing strategy, except you don’t have to actually own a home. The rental arbitrage side hustle involves finding a place to rent, then renting it out for a higher price by the week or month.
6. Property Manager
A property manager is not required to take care of a large number of rentals simultaneously. A part-time property manager that has a trusted handyman and good people skills can essentially operate autonomously while collecting a monthly management fee, which is typically around 8-10% of the monthly rent. Most states require property managers to be licensed, however.
One extra point here is that competent property managers are in very high demand. If you can be responsive to both the tenant and owner there is alot of opportunity there.
7. Bird Dog
Active real estate investors are always looking for deals that are not yet public knowledge. A bird dog is someone who looks out for potential investments that match an investor’s requirements while they are out and about. Some bird dogs get paid per lead, while others only get paid when a deal closes.
8. Real Estate Agent (part time)
According to Realtor.com, getting a real estate license costs around $1,000 or less, and no college education or professional degree is required. It’s not much to pay to get a 3% cut of the sale whenever you sell a house. Many real estate firms allow their agents to work part-time, which can make getting a license one of the most potentially profitable real estate side hustles around.
However, with all of that said, perhaps a real estate side hustle isn’t suited for you. Here is a list of several other side hustles you can work on in your spare time.
9. Host with Airbnb
If you’re able to do so, renting out a room or your entire apartment can help you cover your costs or even save money. The amount of money you make will depend on where your home is and what kind of lodging you have to offer. You can easily see what similar places in your area are charging and work it out from there. Airbnbs are becoming more popular among travelers for many different types of trips, as they offer an alternative to staying in a hotel. Families and business travelers alike often find that Airbnbs provide a great way to make money.
You can use Airbnb to find a place to stay that is protected for both the renter and rentee. You can also set up your own availability to keep things as flexible as you want. If you own multiple properties, you can earn more money with Airbnb, as well as make your earnings more consistent.
The location of your Airbnb rental is very important. Some cities and areas have the potential to earn much more than others. Such is the nature of real estate.
11 Other Side Hustle Ideas
Real estate investors who are successful know how to do the math when they buy or sell. They don’t usually do the books themselves, they usually have someone else do it. Bookkeeping can be a real estate side hustle even if you are not a CPA or have an accounting degree. The Stessa rental property financial software automates income and expense tracking, making it easy to generate reports.
If you already have great photography skills, you could make money by taking pictures and videos of property. With real estate photography, you have the flexibility to work with both residential and commercial properties at any time of the day or night. A career in photography can provide a steady stream of income, as each new property listing requires photography services.
3. Content Writing
If you’re a freelance writer who specializes in the real estate industry, you may have more work than you can handle. There are two great places to find clients – Upwork and Guru. Real estate professionals require an extensive amount of content, which can include blog posts, in-depth research articles, and copywriting for real estate websites.
4. Social Media
Many real estate professionals lack the time to use social media effectively, even though it is one of the most influential marketing tools. Real estate social media consultants can generate income by keeping content flowing to social media platforms such as Facebook, Instagram, YouTube, and LinkedIn.
An even more in demand skill is the ability to combine Social Media and also purchase ads on any given Social Media ad platform.
5. Virtual Assistant
There is currently high demand for virtual assistants. This is not only a profitable and flexible side hustle, but it is also one of the most popular ones in the digital world.
You can work as a virtual assistant from anywhere you have a laptop and reliable internet connection. This makes virtual assistantship perfect for full-time travelers or digital nomads. There is an increasing demand for people who can help manage and run digital businesses for the owner.
You can earn money from any skill you have. If you have never been a virtual assistant, you can become an online entrepreneur who helps other entrepreneurs as their assistant. You may have the opportunity to partial ownership of another business if you help the owner enough.
I have never worked as a virtual assistant, but I have met several people who make a lot of money from it. Some people feel that online work provides more flexibility and a better work-life balance than a traditional full-time job, and are willing to quit their jobs to pursue it. This is particularly true in the case where work from home is in such demand right now.
6. Share Your Car
When your car is not being used, it is losing value as it depreciates and you are not getting any benefits from it. Turo is a car app that allows you to share your car with people who are looking to rent one. This can earn you extra money on the side, all while you do nothing different than what you would already be doing.
Turo accommodates a wide range of car types, from family cars to classics and exotics. It doesn’t cost anything to list your car on Turo, and you get to control how much it costs and when it’s available. If you use your car sparingly, you could make money by renting it out when you’re not using it. One of the easiest ways to make money is through side hustles.
7. Freelance Graphic Design
As many businesses put a lot of effort into their marketing using websites and social media, someone with good graphic design skills is in high demand. Since small businesses and startup owners typically won’t want or need a full time graphic designer on their employee payroll, they’ll usually turn to freelancers for their graphic design needs.
Working with a variety of clients on different projects can help keep things interesting, as well as expanding your portfolio so you can charge more in the future. Unlike many other high paying side hustles, you can choose the projects you work on, set your own hours, and of course set your own rates.
8. Design an Online Course
Before we investigate this possibility, it should be noted that designing a course is not a simple task. If you want to earn money from your creations, you can create passive income streams. Udemy is an online course platform that makes it easy to sell courses online. The company provides plenty of help to make sure you get the most out of your sales.
Design your courses around subjects you understand well to make the most of your effort and offer students plenty of value. You will need recording equipment and video editing skills to make these courses more appealing to your buyers. It is easy to see which courses have the most students and compare the methods used in those courses to improve your own selling skills.
9. Start Your Own Podcast
There are a number of potential benefits to starting a podcast, including the financial return you can earn. You should focus on growing your audience before you try to make more money. The majority of your revenue will come from sponsorship, which means you’ll get to spend your time interviewing extremely interesting people.
10. Become an Affiliate Marketer
Affiliate marketing can be a great way to make money without having to invest too much time or effort. To attract and convert potential customers, you will need one or more websites. You will earn a commission from the company for each sale that is made through the affiliate program.
11. Part-Time Media Buyer
One final suggestion is to learn to buy advertising on platforms such as Google, YouTube, Facebook, and others on behalf of other businesses. This is a great lifestyle side-hustle or side-business as you can do this on your own time as long as you are able to fulfill your obligations. This is one I personally do at my other website where I help companies scale their Google Ads advertising and promote their own content for their sites.
What side hustle are you doing right now? Let me know in the comments below!
Kurt has gone from the financial lows of the ’08 financial crisis to personal financial success. He is a professional real estate investor owning properties in multiple states.
One of his passions is financial education and the pursuit of financial freedom.
You can learn more about Kurt here.