The Good, Bad and Ugly of Real Estate Investments

As the summer travel season approaches, homeowners with a spare room or a vacant beach home may be considering cashing in on the popularity of vacation rental websites.

While many investors get a rise when it comes to the potential profits in real estate, that doesn’t mean all properties rise enough in value to justify the commitment.

Some people buy real estate expecting it to appreciate a lot over time,” says David Reiss, a professor of law and research director of the Center for Urban Business Entrepreneurship at Brooklyn Law School. “But it can be risky – or even foolish – to pay so much for a property that you’re losing money on an operating basis just because you think it will appreciate.
Full article