Don't look at what your buddy did as that was a different time and the cycle has changed.Now saying it wont happen again look at Sanfrancisco and NY prices still going up.Alex 

However you used all of your money to buy properties A, B, C. if you refinance from property A and B, you will be able to get some cash to buy property (D), but property (A) and (B) will generate negative cash flow. it’s certain that appreciation of (D) will be pretty good just in a few years, following the historical pattern of the cycle.

Most developments have at least a 18 month to 2 year life cycle so you might could do one with what you have and then 2 years later do 2 or 3 and on year four you might get 6-8 which would put you in the same place.

I would assume that I wouldn't be notified until the next billing cycle, or at whatever point they decide that I am supposed to pay.  

As you know, I'm a little skeptical about buying at this part of the cycle, but after going over the numbers with you the other night, it looks good.

Great flippers can do their job at any point in the real estate cycle.

You want to make sure you enter at the very bottom of the cycle right before it starts going up again.

The truth is, you will likely  go through cycles of growth which you will fuel with debt followed by periods of stabilization where you pay down principle more aggressively.

I currently am building and selling as much as I can during this cycle and if I time it right I would like to move equity into multi-family once the market cools down. 

If you have to foreclose, then the cycle would start all over again from the outline I made above