Today, I was texting one of my good friends from Memphis, TN. We are both recent graduates from The University of Tennessee, and both have good paying full time jobs. I recently finished Set for Life by Scott Trench and I've texted all of my friends telling them to read it. I texted this guy about it today and he told me he was about to make the following "deal":
He currently rents a condo out in a decent area for $1250/month. He's looking to buy that condo for $155k, live in it for 5 years, then rent it out for 10-15 years later as a cash flow property. He said "It'll be worth double or triple in 15 years". I told him that the market could turn and cause him to lose a ton of money but he seems convinced. I know this isn't a ton of information, but am I missing something? Is there anyway this works out well? Is there anything I could say that would deter him? I know some people just need to learn the hard way but I would hate for him to buy this condo and lose thousands of dollars.
