[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.
