The risk seemed zero, but it still happened (city poor maintenance played a role).- because people should be compassionate.

I think that if you play around with the right deals, you will find that return does increase if you lever up to 50%, but if the debt is negative leverage (interest rate higher than the cap rate, going to max LTV can actually decrease your returns due to this dynamic. 

Stuart - so you think the play is single family homes in "nicer" areas vs the typical multifamily geared toward childless singles?

And, ultimately, she is raising the money, which means that enough people trust the prospects of her performance.You simply have to decide where you stand and play or pass.

Global cash flow plays into the strength of your guarantee. 

You could go into NJ (although the cost to play is high in Northern, but the rents can be very nice), or you could bypass and head into PA near Delaware Water Gap and get low taxes and good renter options.

The price to get in is obviously TOUGH, but if you have a pile of cash to play with, it's hard to argue with or beat the long term results of the cities with the best job markets and lifestyle (for those who can afford it) in the world.

I also would not overlook the power of joining Facebook groups for people looking for rentals, especially if you are placing a tenant yourself.

Play around with that with your more accurate estimates.Rentometer estimates that rents in the area for a 2/1.5+ are around $2500.

It all makes for an interesting dynamic that we've yet to see fully play out.Detroit prices are up 2x in the last 5 years.