So for example I'm very conservative and don't want any debt on them because I feel this hardens them in case of a severe recession.

I will be proud to add it to my RE portfolio even if the overall return may be single digit.Best wishes and be sure to do thorough and conservative underwriting on any RE investment.

@Brett Danehey, I would say that area is questionable, but I definitely lean toward the safer, more conservative side. 

Avoid common pitfalls like underestimating costs or tenant management challenges by planning conservatively and staying proactive.

I suspect without the 2 pts I would be at ~6.625% to 6.75%.What I recommend most is accurate, conservative underwriting.  

Prosper averages a 3-4% default rate (I would suggest 5% to be conservative).I have been investing with Prosper since 2007 and their loans absolutely default.

It is also likely that property insurance nation wide will increase substantially.Hopefully investors are performing conservative underwriting.  

Again, not familiar with your market but your numbers seem conservative, which is smart.

These condos yield 5-8 percent conservatively.

Curious to hear any creative approaches that have worked in today's market.ARV and future value are speculative so when I am looking at property I am looking at it for longer term - does it fit within my strategy based on conservative estimates.