He came in with the cash to close. It was a rental. No he was losing more then 1k a month. HOA alone was 600 bucks. Throw in his loan and property taxes. Additional HOA increases are not being accounted for either, nor are vacancies. I do understand your point and agree with the philosophy but there are some risks that I pointed out above. I assume you are playing a 3 year depreciation and then 5 to get back to his break even point. Could be…
Anyways he was a first time (and most likely last time) speculator who was told by friends and others that making money in real estate is trivial.
