Similar in many ways to construction financing but used by borrowers who can not qualify for construction financing.5.

It takes a lot to stop it.

Mike,While there is some logic to the cycles the details are not accurate for all markets all of the time.Some markets have downturns which really means prices stop going up but they do not really fall.There are markets where prices fall but the recovery is closer to 3 years rather than the 8-10 you are expecting in your cycles.To all:DYOR - Do Your Own Research for you market.

If you just lack credit borrowing to establish credit comes at a cost but it will pay dividends.John Corey

The borrower and home owner still owns the home so you are buying from them.

Borrowed money is expensive money, and don't tell me about "tax breaks", paying a dollar to save a quarter ( doubt if you're even in the 25% tax bracket) is FOOLISH.

I cannot find a lender that will finance a property when the borrower owns more than 10 properties.

In that case using the equity for short periods is different than borrowing for a down payment on a long term purchase.Where in MA?

He would tell me sales prices of houses selling for 500k-1M on Grandview Ave in Pittsburgh he had the chance to buy for 50k 30 some years ago.When i was about 18 i started looking for my first project(rehab) hoping if i found the right deal i could sell it to a family member there were 4 amazing houses i came across but could not sell the idea to anyone there was even one house an old lady gene a friend of mine was going to sell me for $2500 that was rentable as is i could not come up with the money and she was scammed buy the RE investor i learned so much from he saw a good deal and took it. the house hunt never stopped i started showing more houses to my mom and she became more interested. 2005 was a terrible year along with a slow work year construction wise i lost my best friend, grandmother and father then my house ,car everything but my dog due to funeral expense's i realized life was to short and i would not wait to get into this business anymore i moved back in with my mom and became even more motivated to get a rehab going i showed my mom a property in summer 2006 and she became interested and helped me get the house it was almost condemned we bought it for 6k and brought it back from the dead if you visit my myspace page its the yellow house on the slide show Ive since done 2 more and I'm ready for many more I've decided this wont be a hobby i sleep RE literally. ill live in the streets if that means i can keep building this dream.

My take on your possible profitI assume you're borrowing the entire purchase price, the rehab money, and closing costs on the purchase.