New investors often underestimate the cost of maintenance , property management fees , and occupancy vacancies , which can quickly turn a "cash-flowing" property into a monthly liability.
Real estate is one of the few investments where a bank will let you buy an asset worth $500,000 with only $100,000 of your own money. This leverage means that if the property value goes up by 5%, you haven't just made 5% on your cash—you've made a much higher return on your actual down payment. buying real estate as an investment
It isn't all "passive income." To succeed, you have to account for the "Three Ts": . New investors often underestimate the cost of maintenance
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