OK, so he wants you to buy five houses this year … and, he gives you the quick ‘hard sell’ at the end … but, the basic philosophy – to me – is sound:
– Houses are depressed in the USA, but so are interest rates,
– Unless the USA ‘double dips’ prices will begin to go up (when?)
– You can fix an incredibly low interest rate on your primary residence (can the bank rewrite the mortgage if you move?)
– You MAY be able to receive enough rent to cover most/all of the mortgage
– Who says you need to buy five houses (except for this Realtor!?) … just think about one for now
Do the numbers for your area/s of interest (price of house, monthly cost of mortgage, likely rental income, other expenses such as 6% – 9% property management etc.) … if you can even come close to breaking even, could you find a better return on your deposit plus the cumulative cost of any monthly shortfall (or gain of any monthly excess)?
Now, run the numbers again assuming that the US market stays flat for another 5 years before some sort of rebound … maybe it still makes sense?
Have you run the numbers? If so, what do you think?