Based on what I've heard from them during the past several years, it is not the place to invest for reasons others members are posting here and the fact that Bend's economy is somewhat artificial with all the transplants coming in from California.  

Three, though the neighborhood might not be the best, I do take a look at other factors like the houses directly around it, the city's economy, jobs, population growth, etc.

Ben Davis the problem with 2-50 units is economy of scale but most importantly until you get over a million dollar loan size you can’t get Agency debt which is non recourse.

What if the economy or market conditions change?

If you have $20k from some "gig economy" side hustle that can't be used as income at $20k/12=$1,666/mo, it can still be used as an additional $20k down, meaning you need to borrow less, meaning you can take the same income that can be used further.... it takes less income to borrow $80k than it does to borrow $100k!

This is done many times to take advantage of the economies of scale in owning larger assets.  

The economy was in the dumps, nobody was building anything and I imagine that they had a bunch of inspectors sitting around twiddling their thumbs and wondering when the big layoff would happen.  

Don't expect crazy appreciation, but you also shouldn't see the markets crash if the economy turns. 

Indy has a growing population, a strong economy, and growth potential. 

Yes investors are actively purchasing but in my opinion it is good for the district's economy.