Some times in between there in rougher economic conditions it was getting unexpected vacancies. 

It all depends on the market, economic conditions, seasonality. 

If you're in a market thats going through a population exodus, then you are correct that it'll be harder to pass through costs  you are debating macro-economics while ignoring supply and demand fundamentals. 

"I have a very simple criteria for when an area is gentrifying as opposed to just generally improving: If it makes economic sense to buy (at market price) and tear down an existing structure in order to build and immediately sell a new building, then the area is gentrifying.

All of the economics have to be right.

This reflects continued demand despite economic headwinds*Pending sales increased 3.1% in the metro and decreased 2.2% in Austin proper.

The economics of that area aren't real great.. mostly older people and not a lot of opportunity for young people with ambition. 

Mortgages for LLCs with personal credit under 680 are tough and expensive, and under 640 are typically not really economically practical for the borrower. 

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

By the way, from what i read in the street journal, the rental market in many regions is holding strong despite economic shifts, so that could play in your favor as you move forward.What’s your gut feeling on the timeline for scaling up.. are you looking to ramp up quickly, or do you prefer a more measured approach?