Seems to me the only play on the investment property is when you already owned your primary property and didn’t plan on moving or making any major purchase which required credit.
When in this scenario it made perfect sense to go out and lever up on real estate. Worst case scenario was a ding on your credit and you walk away from the properties. Best case scenario you make enough money to retire very wealthy.
Seems to me like it is hitting the news now that many of the proerties going into foreclosure are investment properties. Seems to me that this makes a lot of sense. Sort of like an option contract. Market goes up I sell at a profit. Market remains flat I try to generate income by renting. Market goes South I walk away non recourse and pay the taxes.
Doesn’t really seem like a bad bet. I win on 2 out of 3 scenarios. My loss is limited to transaction cost and my future ability to speculate. But if I already own my home big deal.
