Real-estate investing involves substantial risk. This Risk Disclosure Statement summarizes — in plain language — material risks you should consider before relying on any analysis from CalculateRealEstateROI.com (the "Website"). It is not exhaustive.
Market Risk
Property values, rents, occupancy, and demand can decline due to local, national, or global economic conditions, demographic shifts, employment trends, and other factors outside any model's control.
Liquidity Risk
Real estate is illiquid. You may be unable to sell a property quickly, or at all, at a price reflecting its modeled value.
Leverage and Financing Risk
Mortgages and other leverage amplify both gains and losses. Interest-rate changes, refinancing risk, loan covenants, balloon payments, and lender requirements can materially affect outcomes. Financing approval is not guaranteed.
Operating Risk
Vacancy, tenant turnover, non-payment, eviction costs, maintenance, capital expenditures, insurance, property management, utilities, and HOA fees can exceed estimates and erode cash flow.
Regulatory, Tax, and Legal Risk
Zoning, rent control, short-term rental rules, building codes, licensing, fair-housing requirements, environmental rules, and federal/state/local tax laws change and may materially affect returns. Tax outcomes depend on facts and laws specific to you.
Concentration Risk
Owning a small number of properties in a single market concentrates exposure to local economic, regulatory, and environmental factors.
Construction and Renovation Risk
Strategies that rely on renovation (e.g., BRRRR, flips) carry budget overruns, schedule delays, contractor risk, permit risk, and post-renovation valuation risk.
Short-Term Rental Risk
Short-term rental income depends on demand, platform rules, local ordinances, seasonality, and competition, all of which can change rapidly.
Environmental, Climate, and Insurance Risk
Floods, fires, storms, earthquakes, and other natural events can damage property and disrupt income. Insurance availability and cost vary by market and can change materially.
Model and Data Risk
Calculator outputs depend on assumptions and inputs. Third-party data may be incomplete, delayed, or inaccurate. AI-generated insights may contain errors. See the Calculator Accuracy Disclaimer.
No Guarantees; Possible Loss of Principal
No outcome is guaranteed. You may lose some or all of your invested capital. Past performance and hypothetical projections do not guarantee future results.
Acknowledgement
By using the Website, you acknowledge these risks and voluntarily assume responsibility for your decisions. Consult appropriately licensed professionals before acting.