Risky investing

A lesson in riskonomics

Here is a lesson in how not to invest. If you are heading down this sort of path, it is time for a 180.

Tricia and Glenn Downes just moved into an expensive new house. Tricia, a stay-at-home mom, is expecting another child. Glenn's engineering job has been phased out, and his severance will run out by year's end

The couple already has started down a new, if somewhat risky, career path: Dazzled by the stunning real estate market in Florida in the last several years, the Orlando couple has formed a company that buys run-down residential properties, rehabs them, then resells or rents them out."

We have not reached a point where this is a profitable venture for us," Tricia wrote. "In the meantime, we are highly leveraged and cashing out almost every financial vehicle we have to take this risk."

Renovation business a risky venture [Chicago Tribune]