T
he notion that real estate investing is a cakewalk, where tenants effortlessly cover mortgage and maintenance costs while investors reap the rewards, is a myth perpetuated by those who've never actually done it. Finance guru Dave Ramsey calls this assumption "ridiculous" and warns that anyone believing it is either naive or reckless. He's not alone in his skepticism - with 42% of Americans lacking an emergency fund and 40% unable to handle a $1,000 expense, the likelihood of tenants consistently paying rent on time is slim.

    Ramsey's experience as a seasoned investor, having owned over 2,000 properties worth hundreds of millions, has taught him that rental income is far from predictable. "Renters don't always pay," he points out, citing personal experience as both a landlord and tenant. Life's uncertainties - illness, job loss, or even a pandemic - can disrupt rent payments, leaving investors scrambling to make ends meet.

    The numbers bear this out: 14% of renters faced late fees in the past year, while 23% did so just two years prior. And with more cities now favoring rental over ownership due to combined costs exceeding available rent, the risks for landlords are mounting. It's time to shatter the illusion that real estate investing is a get-rich-quick scheme and acknowledge the harsh realities of the industry.