If the borrower gets in trouble and gets foreclosed on by either you or the first mtg, the property will likely sell for less than the 1st mtg….which wipes you out.

That is the basic math hahahaAs summary :If cost of money is cheap then you should over-leverage your investment into investment that yield higher risk/reward ratio(using mortgage).mortgage is just tools for leverage.This is why lot of baby boomer that purchased the (CA/WA/HI) house in 90's or 2000 are all millionaire, regardless they work in USPS or in tech company LOL ; as long as they invest at the correct time /and/ at the right place LOLnow the party is almost over except if uncle Powell changed their mind in 2025 LOL

Do not invest in any city on Neighborhood Scouts’ list of the 100 most dangerous US cities.Low risk of a natural disaster: Natural disasters can wipe out jobs, homes, and businesses, forcing people to relocate.

As far as I understand if the first position mortgage is the one that foreclosed, the second will be wiped upon sale, but if the second foreclosed, I'm not sure how this will play out.

If you go CMBS or a low enough LTV you can wipe it out altogether but still have carve outs.When setting up entities there are multiple decisions for each property that have to be considered. 1. 

The way you word it is actually perfect and just wiped some smudge from the view I've had on money altogether.

I started investing from 0 in 2020 as a new immigrant and went from 0-15 doors in less than 18 months while working full time and expecting my first baby.

But they could have been by far the Largest SFR turn key broker in the US had they just aligned with the right folks in the beginning and then did not duck and cover when they new it was going bad and investors were getting wiped out..

I was thinking of single family to start.. baby steps.

My wife and I planned on having a baby soon and i told myself i have to make a change.