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

Nearly 90% of residential real estate investors have experienced losses, with 42% saying they've lost more money than they've earned, according to new research by Clever Real Estate, a company based in St. Louis.

Additionally, 42% of investors reported losing $200,000 or more on a single investment. Alarmingly, 45% admitted that a bad investment nearly ruined them financially, and 40% regret ever starting in residential real estate investing.

A significant 87% of residential rental investors have regrets about their investments, with the most common problems being bad tenants (51%) and severe property damage caused by tenants (52%).

About four in ten rental owners face maintenance issues (41%) or repairs (40%) at least once a week, and nearly two-thirds (63%) deal with complaints from neighbors about tenants at least once a month.

More than half (56%) of respondents have had to evict tenants, while 61% said they regularly track down missed rent payments each month.

Despite these challenges, three-quarters (75%) of investors are making at least as much as they did in 2023, with 41% earning more and only 14% earning less. Notably, 44% of investors said they couldn’t live comfortably without their real estate income.

Moreover, 80% of investors are involved in more than one type of residential real estate, such as long-term rentals (51%), buying land for future development (45%), house-flipping (42%), and short-term or vacation rentals (40%).

Surprisingly, about two-thirds of investors would consider purchasing properties with squatters (67%), foundation problems (65%), or those at high risk of natural disasters like floods, wildfires, or hurricanes (62%).

The most pressing concerns for real estate investors are high interest rates (44%), high home prices (41%), and inflation (40%).