My feeling is that when it comes to leverage and real estate particularly, there’s a lot of luck involved with the price direction of the market. The ability to walk away really limits the losses in a lot of states.
I have a post coming out on Monday which is basically the counterpoint to everything @MissMazuma expereinced.
In fact, a lot of my taxable wealth is entirely due to the use of leveraged real estate. Did I get lucky or did I make smart decisions to buy at a good enough time and sel at a good enough time. I don’t really know.
But I know the people before me had to short sell TWO mortages on that property to sell it to me for 36% of the price they paid for it 3 years earlier.
Is debt necessary? I don’t know, but my usage of debt is absolutely the reason that I am where I am.
I’ll share the post here after I publish it.