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How many times can you do this until the banks will not entertain the Idea? Does this only work in a market where home prices only go up?


You can do this indefinitely with commercial real estate including multi-family dwellings. Lenders are comfortable with 50% loan-to-value. You do need to have some cash flow from the properties to service the debt. It does require the properties to either appreciate over time or for you to build up more equity in them by paying down your loan.


Makes sense, thank you for spelling it out for me.


You can do this indefinitely with commercial real estate including multi-family dwellings. Lenders are comfortable with 50% loan-to-value. You do need to have some cash flow from the properties to service the debt. It does require the properties to either appreciate over time or for you to build up more equity in them by paying down your loan.




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