Generally speaking the closer you get to downtown the rougher the area is.

I speak with the tenants personally and they are usually happy to tell me all the issues.

If the net cashflow is negative, it's treated like a debt/liability for DTI.

Hey Lolo, I am an REI agent in Cincinnati and NKY, just speaking from a point of your question from the market I am in, you can do both, and I recommend sticking with "better appreciating areas".

You might go cashflow neutral or even negative on the properties, but could probably walk away with $50k to $100k in cash.

Would be happy to meet up and discuss your goals in more detail.Glad you said it, I didn't want to come off as being negative@Jackson Harris  the Phoenix area may not be for you with that kind of money yet for all the reasons Scott mentioned. 

Generally speaking solid insurance and a good umbrella policy will provide ample financial protection for most liabilities.

Re 3X 6X not sure what you are speaking about.I was addressing reserve requirements which do not have anything to do with PITI 

Many lessons have been learned firstly is you can’t be too nice or trusting and second is, don’t wait to figure out the refinance and cash out process and until you are almost done with rehabbing the property because currently going through a very lengthy, cash out refinance ordeal at the moment as I’m trying to get financing terms finalized as we speak.

Well, there is actually much more (more on that in a sec).Regarding the negativity, I think this has been a healthy discussion and it's great that people bring the negatives.