Best passive way to earn cash flow

[Venkat P.]

My wife and I are just starting in the rental RE. We have purchased a SFR (cash negative) in Sacramento, CA area few months ago. We know that it is currently cash negative but given our income from W2, we are able to cover that for now . The goal then was to build some equity on it long term and refi when the rates go down.

Looking for the next investment suggestions. We do not want to take another cash negative property, so looking for cash positive options. We have reserves to do 20% down on ~500k properties. The goal for us is to scale our investments so we can get around 2k/month in the next 2-3 years

[Steve K.]

One thing that hasn't been mentioned yet is dividend stocks. Most investment vehicles RE-related aren't truly as passive as advertised in my opinion (with syndications you've got to put in the work vetting sponsors (a lot of them are having trouble recently, and it's not passive for the investor when the syndication starts having capital calls or stops distributions...), and with private lending you've still got to have some experience and understanding of the risk, know how to protect your principal investment, know how to set up the loan terms and contracts to protect your capital, and know what to do in case the borrower isn’t able to perform).