They're very numerous, including but not limited to: 1. A higher downpayment is required to purchase property. This means significant liquidity is taken from y

They're very numerous, including but not limited to: 1. A higher downpayment is required to purchase property. This means significant liquidity is taken from you immediately. 2. Investment property is often more distressed and/or requires more upkeep. Add the fact that you're not physically on the property and you'll see how you only will be reported for expensive issues and not preventative maintenance, which you can't really do as an investor (there are laws around just going in your property). 3. The biggest issue as buying as an investor is that you have to have a lot of money to cover vacancies. Under the plan outlined earlier vacancies don't matter since you'd only do it with a house you can afford with or within tenants.