They are doing that all while property prices and rent are increasing faster than inflation, while they have a tenant paying down principle, while enjoying greater tax benefits than with index fund investing, and most importantly while being in direct control of their investments.

Indeed, this method allows one to make multiple contacts (he says his conversion rate rises significantly between the fourth and fifth contact).

Alternative pockets exist today but consider most homes, land values, near same value 20 years ago inflation factored.

Time permitting, I'll show you a deal I'm doing in that area (Wilhemina Rise) that is 3 houses on 1 lot.

People that get into new construction get taken advantage of frequently, by sub-contractors and superintendents by inflating proposals and doing kickbacks.

I have seen even big mistakes recently be rewarded by the rising tide of the market.

They knowingly or unwittingly inflate the retail value, understate the rehab costs, have no ability to close on the deal if they do not find an assignee, who often times are as ignorant as they are, and, in short, give a very bad name to the industry as a whole.  

If your time horizon is 10-15 years, imo you will still beat inflation. 

Inventory is still low here however so that has kept prices steady and rising.  

In my neighborhood house values have gone from the peak of 185,000 with foreclosures down to 75,000 at the bottom.Now it has gone back up to 85,000 to 90,000.Most of the foreclosures are Freddie Mac in my subdivision with a couple Fannie Mae's.I do the bare minimum to maintain the house.I am not worried about the value and simply the mortgage payment is much cheaper than rent for a similar house in the area.Eventually if you hold long enough it will rise back up to meet debt payoff.I don't see the primary residence house as my source of retirement.I see the other owners taking great care in my subdivision of their properties.This can only help the development to rebound sooner in value.