USING LEVERAGE:
Let’s talk about how mortgages can be applied to the Buffett School of Contrarian Economic Theory; you should probably be maxed out to the hilt on your properties. “Mortgage Planning” was a sales technique we debt peddlers used, during the boom. We dressed up serial refinances, to the maximum permitted loan-to-value, and called it “home equity harvesting“. The theory suggested was to make money from arbitrage opportunities by borrowing against your (appreciated) principal residence at x% and investing that money at (1.25) x%.
Red the rest here: http://www.biggerpockets.com/renewsblog/2010/01/22/imprudent-leverage-contrarian-opinion/

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