Came across this recent post by someone in the financial planning sub-reddit. The couple owns 5 rental properties in addition to their primary residence. Over-leveraged to the hilt, suddenly lost job and unable to even make short term debt payments. Sounds completely insane but people do crazy things.
Wondering how on earth any lender would have let them get so over-leveraged. If this is happening in more than a few isolated cases, we may have more supply come on market and falling housing prices.
This would be the definition of a bubble if many people are this irresponsible and suddenly get caught with their pants down. I have been long on real estate forever, but stories like this shock the hell out of me.
submitted by /u/UIUC_grad_dude1
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Came across this recent post by someone in the financial planning sub-reddit. The couple owns 5 rental properties in addition to their primary residence. Over-leveraged to the hilt, suddenly lost job and unable to even make short term debt payments. Sounds completely insane but people do crazy things. Wondering how on earth any lender would have let them get so over-leveraged. If this is happening in more than a few isolated cases, we may have more supply come on market and falling housing prices. This would be the definition of a bubble if many people are this irresponsible and suddenly get caught with their pants down. I have been long on real estate forever, but stories like this shock the hell out of me. submitted by /u/UIUC_grad_dude1 [link] [comments]
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