Ok, I have been coming across several prospects recently that seem to be all in for buying rental properties as investments for retirement. This has been bugging me because I had a client last year that had 7 properties which he claimed he was making 15% return on. Once we crunched the numbers, his real return was actually a little less than 2%. He was kinda shocked, but then a few months later went ahead and bought another property. He admits he has been lucky and had no bad tenants and no vacancies as well. It blew me away when he did this!

Last month I was talking with a well respected and long time successful real estate agent friend of mine and he told me they did some sort of study and 85% of people that try to by rental homes as an investment, end up losing money. That shocked me a little, but I believe it more than people making these huge returns.

Then this week I had a prosepct tell me he is making 25% returns on his rental properties. I havent reviewed the numbers, but is that realistic? I am beginning to think there are a large number of delusional real estate investors out there. What are your thoughts? What do you say to these people?

Thanks