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If the loan to value ratio goes above 1, then the banks carry the risk because people will walk away like we saw in 2007. That's what I mean by the banks carrying the risk even though real estate is normally a relatively stable market.
I'll throw together a spreadsheet to help me crunch the numbers, but I think even conservative ROI figures for the stock market and relatively short durations will show that having cash now is better than having equity.
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