Anyone with experience in these areas willing to illustrate/explain the pros and cons?

My comments refer to the long term trend, going back even before Case-Shiller index above, but that picture illustrates 2000 to today. 

I'm just making up numbers here but hopefully it illustrates the point.     

For illustration purposes say its a $100K property, guy #1 finds and buys the property putting down $20K and borrowing the other $80K from a bank. 

There are professionals on BP who interact as investors, answer questions, post blogs, illustrate their expertise, add value, and members gravitate to them.  

The example was to illustrate that it doesn't matter to wait to buy cheap, not that you should wait to buy cheap. 

First month, you put $3000 and $2500 goes towards principal and $500 towards interest (using arbitrary numbers here, just to illustrate a point).  

To illustrate the point, go back 10 years and you'll have found a shack in San Diego on the beach has appreciated more than a 4,000 sq ft home with the fanciest finishes in a Memphis warzone.

,You're right that I did not mention many details but my example was to illustrate what's possible, not to lay out and exact business plan with all elements spelled out.On the HML side, let's assume 12% interest and 3 points.

This seems more favorable to the sponsor/manager than almost any other investment management structure I've come across.To illustrate, let's assume a NPN 2nd purchased for $25k including workout costs.