Quote Originally Posted by Danny
U need cash to buy on the courthouse steps
Werd!

You really need cash to flip houses too. Otherwise you'd be paying more intrest each month than the house will appreciate. In the begining hardly any of your payment is going towards principal, it's all going towards intrest.

Just as an example, my first year I made about $12K in monthly payments. Only about $1500 went toward the payoff on the house. The remainder was intrest. Now add your closing costs to that, realtor commissions, and then homeowners association fees if you live in a neighborhood. You'll be in a big hole from the beginning without cash.