My belief is they dont have a plan.
Will the equity that is being built by renting the property not offset the negative cashflow in the long run?
Perpetuating this entire myth are the gurus. I'm a big Robert Kyosaki fan. I enjoy his books and think that they are good from a philosophical standpoint. I've seen him on TV and in videos saying that getting rich is when you have enough passive income coming in that you never have to work again. I work hard, but I doubt if I work as hard as he does. For someone that proclaims that he doesn't ever have to work again, he seems to be continuously working. He seems to always be speaking and promoting his products.I attended a big REIA convention recently. I was riding in the elevator with a guru that proclaimed in his presentation that he was rich. In the elevator, someone asked him how he was doing. His reply was that he was worn out from being on the road all the time! Evidently, he is still working like a dog too.In conclusion, my opinion is that most people are looking for a get-rich-quick scheme that does not exist. The truth is that they are not willing to do what it takes to succeed.Mike