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Originally Posted by Merlocke
Step 4: Watch house appreciate, loan pay itself, investments grow.
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While it's not a bad plan, and homes usually appreciate, they can't go up forever. The person I bought my home from lost $10,000 on it, and it is a good (built in 2000) $140k house in Ohio.
But I agree that the game is to get as much cash on paper and leverage you can get and make more money until you don't need to borrow it. But you also don't want to be in financial ruin because the market tanked or people started to realize that investors were controlling home prices instead of homeowners in the major markets and people couldn't or didn't want to pay the premium for some flippers greed.