5. Real Estate Owned

Property purchased for rental or acquired through foreclosure are included on the balance sheet as real estate owned.

As of December 31, 2019 and 2018, real estate owned totaled $8,258,082 and $2,943,438, respectively, with no valuation allowance in either year. In the fourth quarter of 2019 the Company recorded an impairment loss of $417,094 compared to an impairment loss of $67,493 in 2018.

As of December 31, 2019, real estate owned included $558,672 of real estate held for rental and $7,699,410 of real estate held for sale. As of December 31, 2018, real estate owned included $887,918 of real estate held for rental and $2,055,520 of real estate held for sale.

Properties Held for Sale

During the year ended December 31, 2019, the Company sold six properties, three were held for sale and three were held for rental and recognized an aggregate loss of $34,919.  During the year ended December 31, 2018, the Company sold nine properties, seven were held for sale and two were held for rental and recognized an aggregate gain of $74,864.

Properties Held for Rental

As of December 31, 2019, four properties, all single-family residences, were held for rental. Two properties are leased on a month-month basis and the other two are subject to leases expiring in October 2020 and March 2022. All four properties are subject to an option to purchase in favor of the current lessee.

Rental payments due from real estate held for rental are as follows: