Example...I took out a 5 year adjustable loan on a condo rental I own and rent out about 4 years ago. I had every intention of selling it before the loan adjusted to a higher rate as part of a strategy to get the most out of my investment.

It now looks as though I will lose out because the market is flooded with condos and the value has dropped about 75,000 in the last 6 months.

Good news for me is I've owned the property for about 20 years which I purchased for $87,000 as a first home. Even in this depressed market it will go for $325,000 so I'm not hurting so bad after-all.

Motto of the story is I gambled and lost about 75-80K but will live with my decision. My overall strategy of buying property I could afford had paid off in the long run.