Trump voter lost her home to new Treasury secretary

[inwiththenew]

18. No she doesn't

I bet what she did was buy the place with as little down as possible to maximize leverage. She then makes improvements to the building and is able to charge a higher rent because the building is nicer than it was. She then probably went back to the bank and they valued the property at a much higher value due to: the improvements, the increased income from the rentals, and probably market factors because the real estate market in California during this period was on fire. She now would have a lot more equity in the place that she could pull out via a refinance.

It says in the article that she used the money to buy other properties so she was presumably doing the same thing. This works so long as the market keeps going up and you can service the debt. We all know what happened to the market though. So she gets hit by the double whammy of tightening credit and renters who can't afford to pay rent.

I made a lot of assumptions in the above but that would be my guess on what happened to her.