Quote:
Originally Posted by Ross
Not if you can afford to hold out for 3-5 years. Renting is key, even if you have to reduce rent, let it pay for itself and wait it out. It really depends on comfort levels when you sell or how long you hold. I personally will hold for a long time unless something crazy like a property doubling in value happens, sell and buy into a couple more in an up and coming neighborhood.
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You're assuming that you can rent a property out for what what the mortgage on it is.
It didn't work that way in 2008. Depending on the area, there were places where house values were 1/3rd of what they were in 2005. So you'd be taking a bath just by letting someone live there. I have friends with horror stories.
Question is if this sort of thing will happen again. My guess is yes. Especially if there's more deregulation.