My landlord is expecting 6% annual appreciation for SD SFR, and I agree that his land entitlement deal remains risky until the papers are signed and the money is transferred. I asked him what kind of risk he has to take on that deal, to get a 30% return in 6 months. He said it was a high risk, but one he thought was worthwhile. He told me he made millions in RE. I responded, “But they are paper profits?” “Yes”, he replied, “but profits noentheless”.

Having heard all that, I was wondering how long he could afford carrying my rental house. I mean, the whole house of cards can topple, right? I have no idea how leveraged he is. So I asked if I could change from month-to-month to signing a year lease. I believe if he sells the house, the new owner would have to honor the lease. If he loses to foreclosure, what happens? That is the pitfall to renting a house, as I mentioned before.

I agree that docteur, as well as the other investors and bankers ought to write to their hearts’ content. I was also glad to see some newcomers in the forums this week.