Way to achieve highest leverage (without risk of being washed out)

[Swan Noir]

Assuming there is no FHA provision against renting the house to cover the monthly nut and it's a 20 or 30 year fixed (or variable with a reasonable cap) I would be hard pressed to think of a better semi-passive speculation ... meaning one that did not involve starting an operating business.

I'm not suggesting that house prices with come roaring back although they obviously could. I am suggesting , as I suspect Chuck is, that given a long time horizon there will be points on the curve that your cash on cash return will be superb if you hit the bid.

Quote from Chuck Noblet:

You can buy a house with a FHA loan requiring only 3.5% downpayment. That's only $17,500 for a $500,000 house. You'll get over 28x leverage. You'll have mortgage payments, but as long as you pay them you will not "wash out" and can keep your position no matter how hard it gets hit.

Sit on it long enough and you will most likely make hundreds of thousands of dollars in price appreciation from your original 3.5% position.

You are welcome. Good Luck.