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Real estate investing can seem daunting. But it doesn’t have to be that way. If you want to invest in real estate with little money, there are four common ways you can start building your portfolio. Here’s a breakdown from the cheapest and least risky to bigger ticket investments.

If you’re interested in making a real estate investment, a financial advisor could help you figure out which type is best suited for your financial needs and goals.

Here are four common ways you can start investing in real estate with little money:

1. Rent a Room

Booking.com

The old practice of getting a roommate has been rebranded as a form of “house hacking.” Whatever you call it, if you need extra cash flow, one common method is to find someone to live with you. While this may not seem like a way to invest in real estate, the extra money you’re charging from rent can be used for your mortgage or for a down payment on an investment.

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