My question is...what happens in a downturn like 2007-2008 when banks get tight and shut off the line after you've paid it down.

Think of it as the rough sketch that helps you figure out where you want to swim: Omaha’s stable single-family rentals with decent cash flow and strong appreciation potential, the sizzling up-and-coming pockets around San Antonio where off-market deals still lurk if you’re willing to roll up your sleeves, or those tight-knit Chicago neighborhoods where a trusted investor-friendly agent can point you to contractors who won’t ghost you mid-reno.

When you’re just starting out, the numbers can feel tight because a lot of the cash flow gets eaten up by repairs, vacancies, and other unexpected expenses.

Duplexes or small multifamily properties, even with value-add strategies, rarely match the potential of single-family homes in the right neighborhoods.In summary:Don’t be discouraged by low cap rates—they reflect market expectations of future growth.Focus on single-family homes with high equity potential in desirable areas.Avoid chasing the "economy of scale" myth with small multifamily properties—they often come with higher turnover and lower buyer appeal.Think long-term: prioritize properties that grow in value, even if cash flow is tight at first.

If dropping your rate $100 below others at comparable offerings in your target market kills your cashflow, you may be in too tight of a deal anyhow.

I think this will correct itself over the next 3 - 5 years but it will make cashflow tight or negative until then.I have a great contact of a Realtor that works primarily with investors who has represented a few of my borrowers that I can share with you.

If you can find an MFDU in Asheville, that could be even better for cash flow, but I know inventory can be tight.

You must give notice before entering, but you do not require permission.Any time I expect a response from someone, I include a deadline for their response and a consequence if they fail.

What caught my eye was how timeless your question is - high prices and tight cash flow are still big challenges here.

But I told him to hang tight, since Tesla’s buzz alone was already driving up interest.