Which of the following is a potential drawback of real estate investing?

Real estate investing can provide excellent opportunities for wealth building, but it also comes with certain challenges. One significant drawback is property management challenges. This includes dealing with the complexities of maintaining the property, finding and managing tenants, and handling repairs and other issues that arise. These responsibilities require time, effort, and expertise, and can lead to stress and unexpected expenses.

In contrast, high liquidity typically does not apply to real estate, as properties take time to sell. Stable market conditions are generally seen as a benefit rather than a drawback. Immediate cash flow is not guaranteed in real estate investing, as income can fluctuate based on tenant occupancy and market conditions. Therefore, property management challenges comprehensively encapsulate one of the primary difficulties of real estate investments.