Real estate investments can underperform due to low rental returns, segmented markets, high operation costs, and rising taxes.
i think unexpected repair costs and tenant issues are huge pitfalls. even if everything seems mapped out initially, those curveballs can wipe out the thin profit margins real fast, leaving many investors caught off guard.
Interesting take! I wonder if unexpected market trends also play a big role. Ever seen a well-planned investment derail because of unforeseen expenses or local changes? What do you all think could be the hidden costs?