I've found an 8 I like, but one of the things that gives me pause is the type of tenant I'll get.

If or when lending standards start to sink in order to accomodate buying in a "hot" market, that is when I would see it necessary to take pause.

<<<10 second pause for effect>>> That's it!

This thread and your comments here make me take pause and wonder why you are even getting involved.  

It was the lower end counties and areas (North Los Angeles, San Bernardino, Riverside, and Fresno) that got clobbered.I recently had the opportunity to hear Bruce Norris (a man after my own heart) speak about his prediction for the CA market, and he is very uncertain, because the CA market is doing something it has not done in the last 3 real estate cycles since 1970: it is pausing rather than continuing to run up. 

I have not purchased my first rental yet... stories like this make make me pause and ask myself, do I really need this?  

Never been to Mexico, and all the drug war news would certainly cause me to pause and think a bit before considering a trip to Mexico.

The fact that no homes have sold in the area for a year might be another sign to pause a bit.

Don't leave me hanging............errrrr pause...

. ;-) I did pause for a moment to grasp the concept, but I can see the value and importance that debt plays in the equation.