Most residential real estate buyers are looking primarily for a home to live in and only consider it an investment in terms of appreciation in value, ie the increase in value of the home. This aspect has become painfully clear as if it were not dependent or true at all. However, there is still a way to make a home also an investment that is completely independent of price appreciation. That is where the house can generate income for the owner, as well as provide a residence.

One of the most common ways this is accomplished is through the purchase of a multi-family property in which the owner lives in one of the houses/units and rents out the others. This can be a two- to four-family home or a property that has a separate living unit, such as a “mother-daughter” type of arrangement. This can also sometimes be done by converting a garage and/or basement into a rental apartment.

Any of these situations require the owner to be a landlord and all that that role entails. This includes property and tenant management, liability and liability legal matters, and making sure you comply with all zoning-related laws and regulations. However, especially in areas that have higher rents, the income earned by the landlord can be worth the inconvenience and time.

Another way to earn income from residential real estate is still owning, but on a temporary basis. If your home is in a high-demand vacation area, you can rent your home seasonally while you go on vacation. In reality, this could pay for your entire vacation and more.

A less familiar way to earn income from home, but one that is growing in popularity, is to operate a home-based income-generating business. This does not mean having to open a store in your home, which would be against most zoning regulations. Instead, as an example, you can run a legally permitted professional practice from a part of your home.

So if this fits your situation, when looking for a house you should make this part of your decision process if the particular house makes it possible. This option is not just for doctors or lawyers, but also for music teachers, accountants, and even day care providers. You earn money not only from your business income, but also from saved rent that you would have had to pay elsewhere.

Another way that your property can produce an income is applicable to people who have homes with significant or special property characteristics. If you have agricultural land, you can grow and sell various food products. In certain places you can board pets or even breed and sell dogs. If you have property that fronts a river or lake, you can rent our dock space to boaters.

Therefore, when selecting a home to purchase, you should always try to see if the particular piece of real estate has the ability to generate income and provide you with a residence and should be part of the decision-making process when selecting an actual home to purchase.