I am especially interested in purchasing single family rentals and hoping to gradually shift over to multi family as well. 

I got a rude awakening around Feb when the next years tax assessment came in, bumping my  mortgage payment to about $1,100 a month, now taking into account 70% of the home's value and then again the following year taking into account 100% of the home's value making my new and final mortgage payment $1,300.The rent has gradually increased over the years, but not enough to cover all expense.  

But, we are in an exchange so are putting a good chunk down and have calculated to be at a healthy cash flow that can weather any sudden or gradual market downturns.Feel free to contact me if you want current info from a CA investor looking to go to Phoenix. 

Reading your comment I hear, “know your limits and gradually work your way up”.

@James Galla hopefully I understand this right so are you saying if you set aside 20k for a rental property that you bought and say you need to replace the carpet and it cost 2k you would take this expense out of your income from the property in a gradual manner to replace those funds but not explicitly continue to take out money once those funds have been replaced because over time this would become disporportional. 

If it was me, I'd first politely ask them to leave within x number of days/weeks, and assuming that doesn't work, gradually escalate to offering their full security deposit back to leave, then cash for keys, then evict if all else fails. 

My partner and I are focusing on flips and gradually picking up buy and holds.

There wasn't much negotiating involved, since the foreclosed government loans just gradually decrease in asking price until a buyer gives them the asking price.

What I can say is that by having a patient approach I was able to gradually earn my badges and build the confidence to now pursue 100+ unit apartment acquisitions.

What if the price does not drop, and going up gradually or stay flat the next 3 years?