Best Passive Income in 2025
Hi, I’m Leila! I explore the concepts of location, time, and financial freedom on this blog. In this post, I compare investment strategies I’ve tried to build passive income, as I firmly believe that relying on a single income source won’t be viable for anyone in the coming decade. My focus is on strategies that require under $20k to start and generate returns within 60 days. I rate Land Investing as #1!
Winner: Land Investing 
4.8/5
Started with less than $20K in capital and received my first passive income check within 60 days!
Runner Up: The Stock Market ⭐⭐⭐3/5
Ecommerce Business⭐⭐⭐ 3/5
Real Estate Investment ⭐⭐ 2/5
The Best Passive Income I tried:
Winner: Land Investing
- Boring business = steady, predictable returns
- Low startup capital: You need about $5,000 to start.
- Location freedom: You can buy land virtually without ever needing to visit in person.
- Low competition compared to other real estate options
- Minimal upkeep or maintenance once deals are set
- Requires discipline to start
- Without mentorship, it can be challenging to learn on your own.
- Learn the fundamentals of land investing: [Here]
- Want to get started? Check if you’re eligible to schedule a call with my mentor’s team.
My ABSOLUTE favorite! Land investing became one of my preferred ways to build passive income. What I appreciated most was how affordable it was to get started. I didn’t want to invest more than $20k upfront, and land investing made that possible without stretching my budget.
One of the main things I liked about land investing was its simplicity. It’s a lot less complicated than the ups and downs of cry pto or the slow returns you often see with stocks. With land, it’s straightforward—you don’t have to deal with tenants, renovations, or other headaches common in traditional real estate. Plus, since it’s a lesser-known investment strategy, there’s still a lot of untapped potential.
I also liked the idea of passive income and owning land. There’s something reassuring about having a tangible piece of property, especially in the U.S. It gave me confidence that even during a downturn or recession, land would hold its value better than some other investments.
Another bonus for me was that it wasn’t something everyone was already doing. You know how people say, “If your parents know about it, it’s probably old news”? That’s how I felt about crypto—I missed the early wave. But land felt like a smart move that still had plenty of opportunity.
🙌 What made a difference
A big factor in my success was finding a mentor. I’ve learned over time that when I follow the steps of someone who’s already succeeded, things go much smoother. My mentor had a clear system that worked, and I stuck to it.
What stood out to me was how supportive the program was. It wasn’t just a generic course—you actually get guidance and help throughout the process, which made a huge difference for me. I didn’t want to spend years trying to figure everything out on my own, so having that kind of support really sped things up.
One downside is that there isn’t a ton of information online about land investing. It can be tricky to find good resources when you’re just starting out. But honestly, that might be part of the reason why it’s still such a lucrative field—if everyone knew about it, the market would probably be more crowded. So maybe it’s not such a bad thing after all.
The first parcel of land I bought
- Learn the fundamentals of land investing: [Here]
- Want to get started? Check if you’re eligible to schedule a call with my mentor’s team.
Runner Up: The Stock Market
3 out of 5 stars
- Easy to get started with platforms like Robinhood
Can diversify portfolio with different types of stocks (growth, dividend, etc.)
- Slower growth: Took me 4 years to double my investment (see screenshot of my Robinhood account below)
Volatile market fluctuations can cause losses if not managed carefully
Requires constant monitoring if you want to maximize returns
The stock market is a solid, long-term investment. However, it requires more time to grow your wealth, and market volatility can be stressful. For someone who prefers steady, predictable returns like myself, stocks are more of a secondary investment rather than my top choice. It’s a runner-up because, while profitable, it lacks the stability that land investing provides.
Online platforms like robinhood that make it really easy to get started.
Obviously, it’s a long-term game. While it can be considered passive income, it’s not like receiving monthly deposits on a predictable schedule. Below is a screenshot showing my portfolio growth since 2020. It took me 4 years to double my initial investment.
Ecommerce Business
3 out of 5 stars
Scalable: With the right marketing, you can grow relatively fast.
Location Freedom: You can manage an eCommerce business from anywhere with an internet connection.
- Easy to use platforms like shopify
Dealing with inventory: Even though my marketing background helped me, managing inventory, suppliers, and fulfillment wasn’t easy.
Fluctuating profit margins: Market trends, advertising costs, and competition can drastically affect your profits month to month.
Customer service and returns: Handling customers’ inquiries, complaints, and returns took more time than I anticipated.
Small transactions, big effort: Selling small units often meant a lot of work for minimal returns, especially if a product didn’t scale as expected.
Constant marketing: You need to stay on top of your marketing game to keep sales flowing. This requires continuous testing, optimization, and scaling.
While eCommerce was easier for me than real estate, it still demanded more time and energy than I was willing to invest long-term given my other responsaresponsibilities. It’s a great option for those with a marketing background like mine, but the ongoing effort to manage inventory and fluctuating profits, having to build a team made it less of a “passive” income stream.
Real Estate Investing
2 out of 5 stars
- High return potential: You can generate rental income, which provides cash flow.
- Appreciation: Real estate typically appreciates over time, adding to your wealth.
- Leverage: You can use financing options (like mortgages) to scale your portfolio.
Large upfront capital required: The pay-down is often high. I saw real estate deals that needed tens of thousands, if not more, to even get started.
Dealing with tenants: I’ve experienced firsthand how demanding tenants can be when I saw my landlord dealing with water damage in the apartment I was renting. You’re always one call away from a maintenance nightmare.
Renovations and maintenance: Properties need constant upkeep, which eats away at profits.
High property taxes: Property taxes can be significant, and they vary widely depending on the location.
Strict regulations: Zoning laws, rental regulations, and a constant flow of new rules make real estate unpredictable.
Real estate requires a lot of capital, time, and effort. For someone like me whose fulltime job is demanding of my time, and who values simplicity and long-term gains this wasn’t the right fit. While it offers some solid opportunities for appreciation and passive income, the hassle of tenants, repairs, and unpredictable costs made it less attractive compared to land investing.
Potential for high returns if you want to invest hundreds of thousands and the patience to deal with all the paperwork and intricacies.
🙈 What could be better: The costs
I even looked at property abroad, in European cities that were considered “affordable” and here’s a breakdown of costs in Barcelona, Spain.
Costs Before Buying:
- New Build Property (from Developer):
VAT: 10% on residential properties, 21% on building plots. - Stamp Duty: 0.5% to 1.5% of the purchase price, depending on the region.
- Resale Property (from Private Seller):
Transfer Tax (ITP): 6% to 11% depending on the region. - Solicitor’s Fees: Vary based on the complexity of the purchase.
- Notary Public and Land Registry Fees: Vary depending on the purchase price and complexity of the deed.
Costs After Buying:
- Local Taxes (IBI): Annual taxes based on the cadastral value of the property.
- Community Fees: Applicable to apartments or terraced houses, covering communal expenses like maintenance and concierge services.
- Non-Resident Income Tax (IRNR):
- If Property is for Personal Use: Tax based on 2% of the cadastral value, taxed at 19% for EU residents and 24% for non-EU residents.
- If Renting Out the Property: Taxed on rental income, with possible deductions for property management and maintenance costs.
- Wealth Tax (Patrimonio): Annual tax based on the net value of assets in Spain, with a large tax-free allowance (e.g., €500,000 for residents in Catalonia). Tax rate ranges from 0.2% to 2.5%, based on asset value.
The property I was looking to purchase in Barcelona, Spain.
Land vs. Real Estate Investing
This is the comparison everyone wants, as these activities are the most similar. For newbies and everyday people looking to get started, my recommendation is 100% land investing.
🏞 Lower Initial Investment – With land investing, you can start with much lower capital than traditional real estate. You don’t have to worry about major upfront costs like renovations or repairs, which can easily add tens of thousands of dollars to the cost of a property.
💼 Less Hands-On Management – Unlike rental properties, where you’re responsible for tenants, maintenance, and repairs, land investing is hands-off. You don’t have to deal with tenant complaints, property
📈 Fewer Market Fluctuations – Land is less volatile compared to other forms of real estate or investments like stocks and crypto. It’s a stable asset that holds its value over time, and unlike the housing market, it isn’t affected by interest rate hikes or market swings as drastically.
🔑 Simplicity – Land investing is straightforward. There’s no complicated paperwork or processes involved like with purchasing and managing a house. It’s easy to understand, and with the right strategy, you can achieve passive income without much effort.
💵 Smaller Profits Per Deal – While land investing offers more manageable investments, the returns on individual land deals are generally smaller compared to the larger checks you can get from flipping houses or renting properties. However, the tradeoff is the lower initial capital and less hands-on involvement.
Passive Income Comparison Chart
Here’s a recap of the different options I explored based on my selection criteria.
Investment under $20k
Return within 60 days
Simplicity
High Return Potential
Total
5
5
Land Investing
5
5
3
4
15/20
Stocks
3
2
4
2
11/20
Ecommerce
3
2
3
2
10/20
Real Estate
-1
0
-1
5
3/10
Why I Chose Land Investing
If you’re like me and want to build long term wealth without betting it all on one thing, land investing might be the right fit for you. It’s a “boring” business, but boring is sometimes exactly what we need. Thanks to mentorship and the low competition in the market, it’s a fantastic opportunity to grow passive income steadily over time.
For those ready to explore this option, I recommend starting here to get a deeper understanding of how land investing works.
Thanks for reading!
I’m Leila! I explore the concepts of location, time, and financial freedom on this blog. I rated Land Investing the highest for its highest return and low startup capital requirement.