There are a multitude of ways to start generating passive income. One of the most common is to invest in real estate. That strategy would allow you to earn rental income that you can use to offset some of your expenses.

The easiest way to invest in real estate is through a real estate investment trust (REIT). These entities own a collection of rental properties, which generate income that they distribute to investors. REITs are very low-cost investments, with many having share prices below $100, and are more passive than buying a rental property that you'd have to manage.

Here's a look at some top REITs to consider buying to generate passive income. They could turn a $1,000 investment into up to $74 of dividend income every year.

EPR Properties

EPR Properties (EPR 0.81%) is a REIT focused on owning experiential real estate -- think movie theaters, eat-and-play venues, and other similar attractions. It leases these properties back to tenants that operate the experiences. Those leases supply EPR Properties with stable rental income.

The REIT pays out about 75% of its cash flow in dividends. Its stock has a 7.4% dividend yield at its recent share price of around $46. A $1,000 investment would produce about $74 of dividend income each year at that rate.

EPR Properties uses the cash flow it retains after paying dividends to invest in more income-generating experiential properties. It was on pace to invest about $250 million last year. That investment rate positions EPR to grow its cash flow per share by about 3% to 4% per year. That should support dividend growth at around that same annual rate; it raised its payment by 3.6% last year.

W.P. Carey

W.P. Carey (WPC 1.89%) is a diversified REIT. It owns a high-quality portfolio of operationally critical industrial, warehouse, and retail properties. It also owns some self-storage and other properties. It leases most of these properties to tenants under long-term net leases with built-in rent escalation. That lease structure provides stable and steadily rising rental income because tenants cover all operating costs, including routine maintenance, real estate taxes, and building insurance.

The REIT targets to pay out 70% to 75% of its stable cash flow in dividends. That payout currently yields 6.5% at its recent share price of less than $55.

W.P. Carey uses the cash it retains to help fund new property acquisitions. It invested $1.6 billion into new properties last year. Those new property additions included a portfolio of 106 discount retail locations in the U.S., a U.S. battery manufacturing facility, a five-building manufacturing and industrial campus in Mexico, and a U.S. data center. The company's growing portfolio and rising rental rates should support continued dividend growth. W.P. Carey raised its payment every quarter last year.

NNN REIT

NNN REIT (NNN 0.29%) is a REIT focused on single-tenant net lease retail properties. Its top lines of trade are automotive service locations, convenience stores, and restaurants.

The REIT currently pays a dividend yielding 5.9% at its recent share price of less than $40. NNN REIT has an exceptional record of paying dividends. Last year marked the 35th year in a row that it increased its dividend. Only two other REITs and less than 80 publicly traded companies in the U.S. have reached that milestone of steady dividend growth.

NNN REIT grows by acquiring additional income-generating retail properties. It does that primarily through relationships, which have accounted for 72% of its acquisition volume since 2007. It establishes relationships with growing retailers, allowing it to acquire additional properties through sale-leaseback transactions as they expand. The REIT has a strong balance sheet, positioning it to continue acquiring properties and increasing its dividend.

Excellent passive income producers

Investing in REITs can be a great way to generate passive income. Thanks to their lower price points, you can steadily build a portfolio of income-generating REITs. That strategy will supply you with a steadily rising stream of dividend income as you buy more shares and those REITs increase their payouts.