Posted by RR Smith on February 03, 2000 at 19:17:29:
If you can owner occ. and if you can make the payments (negative cash flow is common in these cases)or JUST IF you can make the payments …buy the place WELL with an eye towards streamline refin. after a short period to get your mort. rate down to “normal” levels and then with appreciation and lower payments you will have Positive Cash Flow. In fact as a ploy this strat. has worked well for me as the REI market slips away from investors, but remember it is a last resort and you SHOULD BE ABLE to find better deals, much better.