One point from Gene Trowbridge is "interest is not considered profit"An investment contract under the Howey Test was defined as follows:1. an investment of money due to2. an expectation of profits arising from3. a common enterprise4. which depends solely on the efforts of a promoter or third partyWhat this meant for J.

dcg123-that definetely makes sence, and it wouldn't be wise to close your eyes to other ways of investment if they do arise, thanks for your advise!

Really trying to learn so I can do this more when the opportunity arises.

You'll save a lot of money over time, have greater flexibility, and have the $50k borrowing feature, which is incredibly nice to take advantage of opportunities that arise.

If unexpected expenses arise and I don't have a cushion in my budget, I may have to dip into my profits to cover the additional costs.

The potential problems that can arise managing tenants that rent rooms.

Unless you're willing to spend at least a month or two in that local market building a team, finding deals and managing the process, you will likely find yourself in the situation where you can easily be taken advantage of.Also, if you're going to flip long-distance, make sure that you have the flexibility to hop on an airplane at a moment's notice when the need arises.

I say this with caution because our/their experience doesn’t mean you will have the same and there is always risk in a rising market.

The issues arise from when landlords either don't actively manage, or they settle for tenants with red flags.

We did cosmetic updates, new kitchen, yard, etc. but we also had a rising market and improvement of neighborhood.Do you need to do all the improvements to raise the value?