I can’t fathom how residential real estate investors fail

[Thomas Clark]

I can’t fathom how residential real estate investors fail. Or even what failure looks like in real estate. Do you all mind busting this naïve bubble?

If my strategy as an owner occupant is to buy a multifamily complex and rent it out, I do not understand how “failure” is possible. Yes, I understand that property management is difficult and tenants can be pain but failure seems (a total loss of time and money) seems impossible to me.

As an Owner occupant If I don’t have tenants then I could drop rent and although rent wouldn’t cover the mortgage it could at the minimum subsidize my living. Or hell, at the first worst let’s assume I’m the only one who wants to live in the property. Hey, as an owner occupant no big deal, I would of had a mortgage/rent payment anyway.. Am I missing something? I don’t see how one could fail? 

My Introduction to REI failure (for those interested):

I’ve been bitten by the real estate bug three months ago and ever since then I knew this was my path to financial freedom. Since, I’ve been bitten by the bug I’ve been devouring “Frank Gallinelli - What Every Real Estate Investor Needs To Know About Cash Flow,” and all things BiggerPocKets in order to educate myself on the craft.

However, will reading the forms last night I came across a post that mentioned most Real Estate Investors Fail. This post has been bugging me because out of all the resources I have been devouring for the last three months this is the first THING I’ve touched that mentioned failure. First.. On top of that the poster noted (and was second by another) that MOST Real Estate Investors fail. When I originally ready this I was completely shocked. Here I was trucking along as though everything was alright and while I won’t say I think nor thought I was guaranteed success, the idea that I could fail simply didn’t enter my mind.