Undoubtedly, Buffet's conclusion must be similar.Lending practices aside, the biggest risk - as your graph and Thomas's post illustrate - is the generation of rising real estate prices (heavily fuelled by select markets within Canada) with no substantial re-alignment to underlaying local economics and household incomes.  

To illustrate what I mean, take 2 identical 1200 SF homes, the only difference is one is located in Phoenix and it rents for $1200/mo while the other is in Los Angeles so it rents for $3000/mo. 50% rule predicts that the operating expenses for the Phoenix house will be $600/mo and the expenses for the LA house will be $1500/mo ...

Now I do not share this to brag at all, I am a very humble person, but the objective here is to illustrate how important it is to always follow up with your leads, even when they constantly tell you no.

A similar selection bias is probably at work in real estate, when, for instance, people sell houses after they have appreciated a lot in value.Here's an illustration of the way this works in the art market:Imagine two paintings were purchased at an art dealer in 1972, each for $10,000.

But this is for illustrative purposes only.  

I provided the number of shares just to illustrate that this one unit is being treated with two completely separate chains of title.

For me, this illustrated that ratings aren't everything, and there are socioeconomic and other factors that come into play.

Course Description:The course illustrates how skilled management practice can assure the production of maximum financial yield to investment real estate.

I apologize for the confusion - I mentioned replacing 2 of each of the CapEx items just so I could illustrate that I was attempting to estimate more than I would most likely need. 

@Joseph Reh All together, I've had/have three single family homes near Washington State Navy bases -- and it illustrates the problems and opportunities.My home in Bremerton (and those of my friends) only rented to military half the time.