Well.....................
She refinanced the one she bought in 1989 (never refinanced it all this time) and is using the money to fix it up (hasn't done anything to it all this time) so she can rent it out (figures she will get a higher quality tenant even though the house backs to a major street and is over 30 years old) and is putting down 10% on a higher priced home (18 years old with original roof but maintained relatively well).
She "heard" that Greenie will lower rates again and figures houses will jump up in price because of that. Can't figure out why everyone doesn't just buy all the rentals they can since it's as cheap to buy as rent (by her calculations which don't include contingency of vacancy, much in repairs). Never mind if this is so, what quality of tenant is left to rent and how much will they pay if it's so cheap to buy and might she have to compete with lots of apartments and other houses that can give incentives?
She might do ok (she'll definately get a nice depreciation deduction), but given her record of smart financial transactions she has made (zero percent), I'm not counting on it. Soon as she said she just had to sell her stocks to buy another house, I thought.................. uh oh. Time to think about the bear market being over.
Btw............. she went so far as to beg her husband to withdraw all their IRA and 401K money to buy an even higher priced home. All he would do is stop contributing......... after contributing all these years.
TA
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