Quote:
Originally posted by 930addict
His thinking was that the price of the homes would increase and he could then turn around and sell them. He didn't care that he couldn't maintain the monthly's on all of them. In fact I think he was using his equity plus income to maintain the mortgages. Crazy. I haven't talked to him in a year so I don't know how well that worked out for him.
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Buying homes for speculation is so 2006. A recent thread on Broker's Outpost detailed a deal where the borrower took a 2nd out on his home @ 8%. The cash would be thrown into a stock mutual fund that returned 27% last year and was sure to do as well or better this year.
That's where the real money is.