My friend just called me to say that he bought a second house in Arizona. His first house is in Southern California which he will rent out. In one to two years, do you think my friend will be: 1) Underwater with both houses carrying two mortgages and wishing he had never done it. Pissed off at the renters who are always late with the money and tearing up his first house. 2) Indifferent about the situation. Not losing, nor making any cash. 3) Satisfied with the decision made and in the black on the balance sheet.