Study by a 14,000-agent Real Estate firm: "More than half of residential investors (52%) have lost $100,000 or more on a single real estate investment."

Gaius · 2024-08-29T21:01:08.152Z

Take this with a grain of salt, but . . .

More than half of residential investors (52%) have lost $100,000 or more on a single real estate investment.

ST. LOUIS, July 23, 2024 /PRNewswire/ – Nearly all residential real estate investors (90%) have lost money on an investment, with nearly half (42%) reporting losing more money than they’ve made in real estate investing, according to new research from Clever Real Estate, a St. Louis-based real estate company.

Further, nearly half of investors (42%) have lost $200,000 or more on a single investment. Alarmingly, 45% admit a bad investment has almost ruined them financially, and 40% wish they never started investing in residential real estate in the first place.

A whopping 87% of residential rental investors have regrets about their investments. Common issues include dealing with bad tenants (51%) and severe property damage caused by tenants (52%). . . .

Additionally, 56% of respondents have had to evict a tenant at some point, and about 61% say they have to track down missed rent payments every month.

However, three-quarters (75%) say they are making at least as much as they did in 2023 . . .

prnewswire.com

90% of Real Estate Investors Have Lost Money on an Investment

/PRNewswire/ -- Nearly all residential real estate investors (90%) have lost money on an investment, with nearly half (42%) reporting losing more money than...

Eagle-Keeper · 2024-08-29T23:43:20.367Z

Gaius:

ST. LOUIS, July 23, 2024 /PRNewswire/ – Nearly all residential real estate investors (90%) have lost money on an investment, with nearly half (42%) reporting losing more money than they’ve made in real estate investing, according to new research from Clever Real Estate, a St. Louis-based real estate company.

With the prices of properties so elevated today you really have to be selective on what you’re going to invest in.

Overall very interesting read.

Gaius · 2024-08-30T00:06:58.156Z

Eagle-Keeper:

With the prices of properties so elevated today

Interestingly (and know you’ve seen this chart before) rents have not risen to keep pace with home prices.

For many years home prices and rent prices rose in tandem.
(Green ellipse.) The Case Shiller index goes back only to 1987, but other attempts I have seen date back further and indicate something very similar . . . a little variation during high/low interest rates, but essentially, rents and home prices rose in tandem.

That relationship is now broken.
Right now being a landlord is a bad deal.
Being a tenant is a good deal.

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