SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.
A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary.
“It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”
Maybe I should apply for a FHA loan (maxed out of course), get a HELOC loan at 6-7% interest, and then use these funds to buy assets yielding 9-12%. Oh yea, don't forget the ability to rent the property out.
It's the real estate/dollar carry trade - US patriotism at its finest. Apparently, this is more patriotic than risking your life overseas to fight in Iraq or Afghanistan.