Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

Investment Info:Single-family residence buy & hold investment.

Making matters worse, 99.9% of individuals on BiggerPockets who want to buy in distant markets do so because the entry cost of doing business is lower.

Like someone else said better to buy land that is already suited for use. 

I'd say nearly 95% of the time I'm within that margin. 

Margins are every bit as good.

I have opportunity to buy a small portfolio of performing commercial notes with LTV's less than 50%.  

People will rent homes in that area because they cannot yet afford to buy, but hope to buy a newer home in the future and keep the kids in the same school system and around their same friends.

If you buy in a prime location with desirable amenities, you’re setting yourself up for steady income and long-term growth.

I'd say nearly 95% of the time I'm within that margin.