More than half of Americans plan to set a financial resolution for the new year, aiming to boost income, invest more, or start a small business. Rental properties offer passive income but come with drawbacks like high start-up costs and active management. Consider investing in REITs like Invitation Homes or Realty Income for more passive income.

Invitation Homes focuses on single-family rental properties, owning over 86,000 homes. The REIT pays a quarterly dividend of $0.30 per share, with a yield of 4.3%. It has multiple growth drivers, including acquiring new properties and expanding its management platform. Realty Income invests in a diversified portfolio of commercial real estate, paying a monthly dividend of $0.27 per share. The REIT benefits from contractual rental rate increases and invests in new income-producing real estate for continued growth.

Instead of buying a rental property, consider investing in REITs like Invitation Homes or Realty Income for more predictable and passive income. Invitation Homes offers diversification and lower upfront costs, while Realty Income benefits from stable rental income and long-term leases. Both REITs have a history of increasing dividends, providing a reliable source of income.

Read more at Yahoo Finance: Thinking About Buying a Rental Property in 2026? Consider These Passive Income Investments Instead.