I read the article, I personally didn’t see anything wrong with the advice given in the book. In fact, the math does work out regarding not paying your mortgage early or minimizing your principal payments.
When you are aggressively leveraging to invest in real estate, it is not very useful to make principal payments because you will tend to refi that money back out anyways every two years (in a hot real estate market, you usually have to do it every year).
Is it risky? Heck yes.
Still, you got to make sure the real estate you are buying is going to work out, math-wise. With that in mind, no properties in San Diego will work out.
There are specific instances when to use IO loans and when to use fixed loans in real estate investing.
For appreciating markets, where you will have to refi money out frequently, interest only loans are useful.
For depreciating markets, fixed rate loans are advisable, because you don’t know when the market will start appreciating and you will have to refi/re-leverage money out again.
