My theory in short (abstract from my blog) is this:With a devalued dollar, China and India needing more energy to address their industrial growth, supply and demand ratio increasing on a daily basis - the amount we pump out of the ground is inversely proportional to the demand in the world, a subsidized price that we were paying in the past in the USA (around 90s and early 2000) and Inflation.

It is becoming increasingly more difficult to make $ investing in RE utilizing creative strategies.

That gives you a DSCR of approx. 1.35 (good enough for the bank, not good by Johnny D's standards) and what about when the rate increases cutting into your cash flow and hurting your dscr?

Landlording, as we know, is based more on cash flow principles and the appreciation is gravy.History has shown that over a period of ten years, RE has increased in value.

Usually, in an area where demand is high for affordable housing and also in a more populated area.

Plus a large minority population that got stuffed into really, really bad mortgages.

I do a combination of 2 things to increase the effectiveness of this technique.Leave them a message and say "Hey Jim, I am interested in your For Rent house so I mailed you a letter and you should receive it tomorrow.

I have been doing this on an existing campaign and one test has so far had a 300% increase over another.Yes it is a lot more work but once you get the right campaign you can continually use the same one over and over again and no what to expect.RegardsRich

Mike,Perhaps the third guy sold the 1st guy the bike, as well as the 2nd guy the crack, so he could have a down payment on the RE investment down the st. and stiff you on the rent to increase his cash flow!

My plan is to be able to invest in property for the people I help increase their credit scores by leasing/option in purchasing their first or maybe second home (BK people need new starts as well).