Real estate can be an excellent tool for building wealth. Investing in a rental property can enable you to generate some passive income. It can also allow you to grow your wealth as the property's value rises.

There are many ways to invest in real estate. One of the easiest and lowest-cost options is to buy shares of a real estate investment trust (REIT). These entities own large and growing portfolios of income-producing real estate.Here are two great REITs you can buy for around $125 a share.

Camden Property Trust

Camden Property Trust (NYSE: CPT) is aresidential REIT focused on owning multifamily apartment communities across the Southern half of the U.S. Itcurrently owns and operates 172 properties with 58,250 apartment homes in 15 metro markets. Those properties generate steadily rising rental income, a meaningful percentage of which it pays out in dividends.

Shares of the REIT currently cost around $125 apiece. It pays a quarterly dividend of $1.03 per share ($4.12 annualized). That gives it a 3.3%dividend yield at the recent stock price.

That dividend income is only part of the return. Camden focuses on owning apartments inmajor metro areas experiencing above-average population and job growth. That drives demand for rental housing, keeping occupancy levels high and rents risingat an above-average rate. It also provides Camdenwith opportunities to develop new apartment communities and make acquisitions that supply it with incremental rental income. Those growth catalysts allow the REIT to increase itsdividend routinely.

That growth also helps increase the value of its shares. Camden's stock price has risen by an average of more than 5.5% annually since it came public over 30 years ago. Add that to its dividend income, and the REIT'stotal return has averaged 11.3%per year.

The company has a lot more growth ahead. It'scurrently developing five additional communities, which, along with rent growth and other investments, should enable it to continue growing its dividend income and share price.

Sun Communities

Sun Communities (NYSE: SUI) is also a residential REIT. However, it focuses on properties off the beaten path, like manufactured home communities, RV communities, and marinas. The company has 659 properties, with 179,130 developed sites and 48,760 wet slips and dry storage spaces, across the U.S., Canada, and U.K.

Shares of Sun Communities also currently cost around $125 apiece. The REIT pays a quarterly dividend of $0.94 per share ($3.76 annually). That puts its dividend yield right around 3%.

Manufactured home communities have quietly been a terrific investment for growing wealthover the years. They benefit from durable demand because moving a manufactured home out of a community is expensive. That allows manufactured home community ownersto steadily raise rents, even during a recession.

As a result, Sun Communities has delivered 20 straight years of positivenet operating income (NOI) growth. Its NOI has risen at a 5.2% compound annual rate since 2020,which is faster than the REIT sector (3.2% annually).

Sun Communities has also benefited from its investments in growing its manufactured home community portfolio and expanding into other niche property types (RV communities, U.K. holiday parks, and marinas). These investments have helped further grow shareholder value.

Overall, Sun Communities' share price has risen at a more than 6% annual rate since it came public more than three decades ago.Add in its growing dividend income, and the total return is 12.8% annually.

The REIT is in an excellent position to continue growing its income and shareholder valuein the future. Demand for manufactured housing remains durable, especially as other forms of housing become much more expensive. Meanwhile, outdoor experiences have become more popular over the years, benefiting its RV communities and marinas. The REIT also has a solid balance sheet, giving the financial flexibility to expand its portfolio as opportunities arise.

Collect income and grow yourwealth

Real estate can be a very enriching investment. You can collect some passive income and experience steady price appreciation as the underlying real estate's value rises with its income. That has certainly been the case with Camden Property Trust and Sun Communitiesover the years. With moreincome and growth ahead,they are great REITs to buy right now for those looking to start collecting passive income and grow their wealth with real estate in the coming year.

Matt DiLallo has positions in Camden Property Trust and Sun Communities. The Motley Fool recommends Camden Property Trust and Sun Communities. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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