Is real estate investing worth it?

[Greg Ryba]

Good evening all,

I have not started my real estate investing journey, set to graduate college in 10 months and already have a job lined up. I have noticed a large influx of youtubers and online individuals preaching real estate as a great investment. However, others proclaim that the returns from real estate are not that great unless you buy all properties in cash and only invest in properties near where you live. They state that for a given property, say purchased with an FHA loan, the rent will almost never exceed the mortgage by a significant amount. Therefore, when an emergency happens with the property, such as a broken waterheater/newroof, the net cash flow that was generated is essentially washed out. If you were to stay net zero on the property after 30 years and decide to sell, you will recoup the home price, but after 30 years of work, they state that it is not worth it. Of course, if real estate is your full time business, it becomes more worthwhile.

Therefore, can anyone dispell the potential rumors that real estate is not a decent investment vehicle versus stocks, mutual funds, or an assorted variety of investment options? Does the difference between part time versus full time make a significant difference such to dissaude part time investors? I am sure times are currently different because of the great economy before covid as well, so that plays a factor.

Thank you for your time!