Quote:
Originally Posted by Arizona_928
That's a low ROI...
I feel something fishy is going on with the market...
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If you had 800k sitting around, where would you park it so that it isn't worth 700 in the next year due to inflation. Maybe he had 500k sitting around, so why not borrow (assuming interest was low when they bought), its almost free money, eat off the rental and still have someone buy half of the house for you in the long run. This is what is going on with lot of foreign investors. I met with a listing agent once years ago in an open house and he only works for these two brothers from Israel. They come to LA, buy 10 houses at a time. His responsibility is to fix them and sell them off as they finish them. After they are done, they start buying again. Rinse and repeat.