Billy Joel faced difficulties selling his $64.9 million Florida mansion, eventually slashing the price by $22 million. The cautionary tale highlights the risks of high-value real estate investments. Homeownership comes with high costs like property taxes and maintenance fees, making it less appealing than it seems.

Median existing-home prices ranged from $358,300 to $432,700 in 2025. Despite rising sales, high interest rates and a tough job market keep volumes low. Joel’s $567,686 property tax bill for his Long Island mansion shows the ongoing expenses of homeownership, which can outweigh the initial investment.

Investors can explore fractional ownership in rental properties through platforms like Mogul, offering monthly income and tax benefits without large upfront costs. Properties are carefully selected, ensuring a minimum 12% return even in worst-case scenarios. The average annual return on investment is 18.8%, with offerings often selling out quickly.

Diversification is key in real estate investing, as shown by Joel’s struggles. Commercial real estate offers a 9.5% average annual return on investment, slightly lower than residential real estate. First National Realty Partners provides access to commercial properties for accredited investors, offering white-glove service and quarterly cash flows.

For those looking to invest in real estate without the hassle of ownership, real estate investment trusts (REITs) and ETFs are options. Services like Moby provide investment insights to help make informed decisions. Moby’s picks have outperformed the S&P 500 by nearly 12% on average, making it a valuable resource for investors.

Read more at Yahoo Finance: Billy Joel had to slash the price of his mansion by $22M to sell it