Thinking About Buying a Rental Property in 2026? Consider These Passive Income Investments Instead.

Group 1 - More than half of Americans plan to set financial resolutions for the new year, with goals including boosting income, investing more, and starting a small business or side hustle [1] - Investing in rental properties can generate passive income but comes with high start-up costs and management requirements, making it potentially risky [2] - Real Estate Investment Trusts (REITs) offer a lower upfront investment and truly passive income, making them an attractive alternative to rental properties [3] Group 2 - Invitation Homes focuses on single-family rental properties, owning over 86,000 homes and managing more than 16,000 properties for third-party investors, providing significant diversification and cost reduction [5] - The REIT pays a quarterly dividend of $0.30 per share, with a 4.3% dividend yield, and has consistently raised its dividend since its IPO in 2017 [6] - Invitation Homes has multiple growth drivers, including rising rental income from new leases, acquisitions of new properties, and expansion of its third-party management platform [7][8]