How to Set Up Passive Income

View of a tall apartment buildingThere are different reasons one might want to earn passive or at least semi-passive income. You may, for instance, want to make something on the side to fund a project, advanced schooling, or international travel.

Or you may have had it with your day job and want to be free from it in the near future without worrying about your income stream drying up. Maybe you have too much time on your hands anyway and want to make something of it for a change.

Here are a few suggestions to help you realize that dream of earning passive income.

Build an Apartment

You can build an apartment and earn more passive income than just renting out a room in your home. Get multifamily apartment construction loans from reputable lenders.

As long as you do not intend to live in the apartment yourself and you have a solid credit report, you may be eligible for such a loan.

Rent Out a Room

If laws in your area allow this setup, you can rent out a room or two that you never use. This is also a good option if you are renting yourself and would like to split the cost with someone else.

You do not have to move out, so you will still be able to use all the rooms in the house except for the ones you are renting to tenants.

Rent Out Your House

This is a good idea if you are moving to another house. People who are moving in with someone else, retiring or moving for work can benefit from allowing tenants into their home instead of rushing to sell it.

Remember to change your insurance to the property owner type, so you are covered in case a tenant causes some damage to your home. You may also want to check with local laws about this setup.

Other sources

Apart from housing, there are areas where you may be able to make some extra cash. For example, becoming an Uber driver is a good idea these days, especially if you enjoy driving and being out. You can also setup a home office and start an online business.

There are many passive income ideas out there. All you have to do is research a bit, be creative, and open to new ideas.