The 5% down program has helped equalize a lot that volatility.

STR - higher risk, potentially higher returns, more volatile LTR - more stable returns, smaller returnsBoth have good tax benefitsSTR are becoming very saturated so I am hearing the math on them doesn't make too much sense either. 

Some indexes are better than others for being more or less volatile so its important to know which index your bank is using. 

A .5% post-tax "spread" between highly volatile projected stock market returns, and the guarantee of a 7% return (by not having a mortgage payment) just makes no sense, to me. 

for Zero Risk to capital, move cash to your brokerage and buy USFR, paying 5.4%, must pay federal tax but no state taxes, it holds short term US treasury floating rate notes, no FDIC needed as FED can print more money to pay you offfor Mild Risk to capital, buy BKN, BlackRock municipal bond fund with 20% leverage, pays 5.5% tax free, and if 10 year bond yield falls 2% over next year, likely with rate cuts coming, then this will appreciate by about 15%for Mild to Moderate Risk to capital, buy EDV, Vanguard 30year zero coupon US treasuries, pays about 4%, taxable and if 30year bond yield falls 2% over next year, likely with rate cuts coming, then this will appreciate by about 60%Don't put into stocks if you need the cash in <3 to 5 years due to stock volatility

Bigger concern is making sure you have enough buffer that its not going to be an issue riding the volatility out until the rents go up enough you don't care .

This would give you some more protection from market volatility of having loans.

.- lower turnover- easier on the units when they do move- quiet and less disturbance than traditional, younger- for fixed income, consider partnering with the local housing authority for SEct 8 vouchers, then raise rents accordingly - guaranteed money & the Sr. only pays a portion (if they qualify)Traditional renters- Higher turnover- Higher turn costs- More volatile - higher bad debt- More drug related activities- Adding in children that are hard on units- Higher eviction rates and legal costsConsider all angles before making a decision with the changes. 

That happens if the markets start to get really weak/volatile.

Joshua Tree is definitely interesting selection - probably destined to be a very volatile rollercoaster market - trends toward big overheats and then big crashes after over-builds, people that can time the bottoms over a long time frame can probably succeed very well