Jason- your question is fascinating...who is more stable:- Home owner, day job, bank loan on house, basic savings and 401k, standard consumer debt.- Investor with 10 properties leveraged to the hilt, day job.- Investor with 10 properties free and clear- Management Fund, 30,000 houses, stock share holders, FTC regulation and thousands of employeesI am striving to become the second (free and clear land lord)...I argue that so long as investors don't over-leverage we will prevent another bubble and crash.

One is purely financial & the other is emotional personal preference.If you were to make purely a financial decision, you would unemotionally look at the rates of return associated with each decision.I like that you are looking to pay off your consumer debt.Paying off a 18% credit card is equivalent to a 18% return on your money.Same with paying off a 4% mortgage.What is the rate of return of your $150k down payment buying your dream home?

Knock out your consumer debts and don't incur more.

We are leaning towards remodeling with retirees and healthy environment.

If you put money up front require they have a surety bond for your job especially if it is big bucks, ask for liability and workers comp insurance certificates, check their license out, use a company that is registered at the Secretary of States office and check their standing, also Attorney generals office is making alot register for consumer protection these days.

We just found a great condo in Morton Grove, IL that is a GREAT price and that after he would buy, my parents would rent there (currently they rent in glenview) These are all very nice areas, and I have made some calls to hard money lenders and that is just not the route I think I want to take.I would like to meet a private lender who can appreciate healthy returns, not some brokers who will just tack on more points and raise the rate.I really appreciate all the responses. ***********, did that answer your question?

I am a new investor in Fort Worth, Texas.I have a background in Residential Construction, Consumer Finance, Retail Banking, and currently am a partner in a Land Service Company in the Oil and Gas Industry (I am a Landman).I purchased my first property in July, did the rehab and put a tenant in it just under a month from closing.

Take the top-down approach, and start with a market that makes sense economically, and with a healthy housing market.

Even if there is not a bust, the damage has already been done to the psychology of the consumer.

In the mean time, that vacant house will be scrapped, vandalized and possibly set on fire by a squatter crackhead.So you have a small chance of that 5th house producing income someday, and a very large chance that the house will consume cash to maintain and require tens of thousands of dollars in rehab to undo the damage done to it.There are thousands and thousands of houses in Detroit like this 5th house.