Then, as the Fed realizes what's going on, they slash short-term rates by 50-100bp/meeting to prevent a collapse, rapidly decreasing the short end of the curve, and causing an artificial steepness to the curve because of all the QE going on.

I have made decent money on inexpensive properties and made very little on some more expensive properties.I have gotten properties already starting to collapse (sold for $10K and made a $1K) and properties that are virtually move in ready.

Today we got the first confirmation that other asset managers may have finally given up on the rental conversion strategy, following the observed collapse in multi-family housing starts which crashed from 376K to 234K in April (the lowest since last summer), a drop of 142K and the worst monthly drop since 2006 when the housing market had once again peaked and was about to undergo a very serious correction.http://www.zerohedge.com/news/2013-05-16/multifamily-starts-suffer-biggest-monthly-plunge-2006-reo-rent-recovery-deadIn addition to the money-laundering aspect (confirmed previously) and the REO-To-Rent scramble by PE firms and hedge funds (which is now over as PE become active sellers of apartment rental properties), we highlighted the third implicit subsidy to the housing non-recovery:Foreclosure stuffing.

Luckily, we were able to understand that the market was collapsing (mid 2005) and we cancelled the contract.

I am not saying that you couldn't possibly fix the property and prevent the next step, which is structural collapse.

One of the floors almost collapsed in a bathroom and faulty piping caused property damage for another tenant.Don't know how inspector missed it.

If you secured another cash flowing property with the equity from the first, you'd be doubling down on that bet while hedging at the same time (cash flow).Either way you win, unless you can find a better return on your investment by selling and re-investing your tax free capital gains elsewhere, OR... the US economy could collapse due to the financial ineptitude/corruption taking place w/in the beltway and it could be an all out Zombie Apocalypse headed your way!

Then the market collapsed, my cash-flow got bad, and the banks stopped lending.

How many of his buyers have to stop paying at once before everything collapses on itself?

Hello, I have a 3-Family house in Albany NY under contract with a 2-car detached garage that cannot be used (roof is collapsing, structural issues).