They were speculators betting the price of housing would continue to appreciate, and they would make money when they sold.

Please continue the discussion at:http://forums.biggerpockets.com/viewtopic.php?

I see that you've gotten a few of your questions answered, and I hope that we can continue to do so.Let us know if there is anything that we can help you with!

I needed a place to live but didn’t want to continue renting.

I am 28 years old and have been paying $2350 on top of our $1200 monthly payment on our 120k house (taxes are about 400 a month here) @ 6%.I was wondering what would happen if i paid it off, but then continued to buy one house at a time as it is paid off too.

If at any time during the term of this lease Lessee abandons the demised premises or any part thereof, Lessor may, at his or her option, enter the demised premises by any means without being liable for any prosecution therefor, and without becoming liable to Lessee for damages or for any payment of any kind whatever, and may, at his or her discretion, as agent for Lessee, re-let the demised premises, or any part thereof, for the whole or any part of the then unexpired term, and may receive and collect all rent payable by virtue of such re-letting, and, at Lessor’s option, hold Lessee liable for any difference between the rent that would have been payable under this lease during the balance of the unexpired term, if this lease had continued in force, and the net rent for such period realized by Lessor by means of such re-letting.

Remeber you are going to have to continuously manage this campaign so you need to keep things as simple as possible for you to make management tasks easier. 

You should continue to save, establish and protect your credit rating, and keep on educating yourself by reading everything you can - sounds like you have a great start in that area.

My current thoughts are: bird dog a few more deals until I can contribute a reasonable amount of money to a flip, then continue to flip homes until I can buy one of these properties cash as a rental.

Of course by the time you end up at this point you will probably be leverageing everything to continue investing.