The end is that your hapless investor will not be able to sell the property to recover his money - or maybe not even enough to recover yours.

How long can this last and how long to recover?

How long can this last and how long to recover?

Cash flow is also profit, but tangible profit....and, it the property didn't recover, which profile would you rather be in:A)  Financed with only 20% down (own money), and only have to recover the down payment to break even (since the tenant(s) are paying the mortgage for you)B)  All 100 % cash/equity, and have to recover ALL of your "purchased" equity before you start making a profit.

The Detroit market is so depressed right now that I wouldn't be surprised if you were able to quadruple your money over the next 10-20 years when the market recovers. 

And, prices in New York have not fully recovered to their previous peaks in real terms according to Case Shiller before turning downward, meaning that people who simplistically believe that a market will always return to its previous peak are engaging in wishful thinking.  

You will not recover the time, money and energy you spend chasing them. 

History will be on your side, as long as you are wealthy enough not to care about cash flow or the sharp declines in value that might happen (only to recover) during the time period you hold your asset.

No they would have to pay and then to try and recover from the PM.

It took us two years to recover from that mess, and our average holding time of those properties was 11 months with 4 months being the shortest and 2.5 years the longest.I told you why I'm a little wary of auctions, but it sounds like it's different in IL.