What, besides loss of job or major credit problems would prevent him from refinancing?
What would prevent him from refinancing? Nothing, if he has the equity (millions have ZERO equity) to cover new tough down payment requirements, say 20%, and can qualify for a much higher monthly under much tougher qualification terms.
The days of anybody with a pulse getting a 100% loan, no down payment, no credit check, no minimum income requirements etc will be over. In fact, they will seem like a dream. Millions of Americans who stretched and fudged to get into a 100%, interest-only ARM loan (on the assumption the house would increase in value 10-20% per year) may be shocked to wake up in an entirely different lending climate. I remember the 1970s.
Valuation of the house. If the housing bubble bursts, he might want a $250,000 loan on a house the appraiser says is only worth $200,000.
But real estate investing is so 2005. I'm putting my money in investment grade tulips.
The Chinese holding the loan?