High Initial Costs
One big requirement to participate in real estate investing is a large sum of money upfront. Such expenses include two elements: the down payment and closing fees in addition to immediate renovations or repairs. To most individuals, such activities will be very expensive, thus stopping them from starting.
Ongoing Expenses
Depending on the type of property one has, it usually involves costs like maintenance, taxes, insurance and of course payment on a mortgage if the property is financed. If you have tenants expenses such as repairing or lawsuits you may meet expenses you did not plan for.