This also poses risk for short-term mortgages or ARMs.If you're going to hold rentals, my suggestion would be to set a longer-term time horizon unless you feel like gambling...

For fun I followed up on one in Bahrain  and the number actually worked and it was some middle east dude,  I wanted to see what kind of yarn he would spin. could tell by talking to him he was anything but a high rolling financier of with off shore investments. but I suspect with the way some wholesalers work you will run into this as well.. although doubt they will be selling homes and leaving that much meat on the bone !!

I like to INVEST in real estate, not GAMBLE.....

Happy long-term tenants are worth their weight in gold, so making that move before the impact of this new company is truly known is a bit of a gamble. 

I view their form of diversification as playing a round of Yahtzee: rolling multiple dice.Investing, farming, and gambling all share something in common: they all involve playing games with numbers.

Got one call only out of 1000 cards.He gave me the address on the voicemail (I'm offshore and have done the whole deal from out here) and I looked it up before I called back.Asked what he was wanting for the property and asked if he would meet my associate to view the house.

That is a huge gamble.

At that point, you are not risking or gambling, you are taking sure bets.

That being said, assuming you invest in CA while you live in CA your returns wont be as high but you will also have that good looking income and lifestyle should things take a turn.Bakersfield is a great market to invest in if you are looking at investing in CA because there is still good cash flow and if you look at some of my previous posts you can see there is growth here, but it really comes down to if you want to gamble and potentially make more income than you could have even with your job, or if you want to take the job and play it safe and increase your investments over time.  

I think that people are just gambling that the Lender just won't bother.Now, let's say you locked in a 30 year fix rate mortgage at 4%.Why would you take a chance of having to refi that beautiful Mortgage if the Lender calls the Loan?