In the short term, most real estate deals are quite cash-intensive investments, with little room to recover these costs in the near term, or until the property is sold or leased. They require cash to purchase, to use for a down payment, to repair, to maintain, for taxes, homeowners fees, emergency repairs, utility bills management, and marketing fees, among many other costs. In your initial analysis, you should recognize that nearly all real estate deals will require a considerable amount of cash. Ultimately, because of this large, chronic cash requirement, you should ensure the reward for such an investment outweighs the risks you must take to enter into this type of investment.