I would think this is a bogus story. Most buyers enter the investment market for negative gearing. Also how is he earning $130,000 plus paying the mortgages. There is not 1 bank who would consider lending purely on the equity of the first property. Serviceability is the #1 criteria so you have to be able to show rising income which you are not going to get on a pizza delivery wage. Also you will not get full credit for the rental income, only 80% and it will decline as you pay the 2nd, 3rd etc investment property. Plus how was he paying all the stamp duties - they are significant amounts across 13 properties. Then there are rates, strata, and other rental management costs. From western Sydney, I wonder where he was buying and was it affordable, it can't have been in Sydney.
