As long as you can stomach a downturn, have cash reserves, etc. it's a smart play. 

If you have a stomach to deal with some challenges daily, then inner city is a place to be.

Banks and other lenders like to make money, but they can’t stomach losing it, so they often wont just agree to the price on the contract.

Now- believe me this, when I started I had a separate line for my tenants (still do), when that phone rang my stomach would drop- how I did not have a stroke I don't know.

This is where the unsecured portion of the loan is very painful to stomach.  

This includes determining best, worst and most likely outcomes and then deciding how much uncertainty I can stomach and how likely I think the possible outcomes are to materialize.Now, I must admit, I have not made my first REI deal.

For example, if I can find a fixer for $120k + $30k renovations that has an ARV of say $200k then (according to the 70%rule) I slightly overpaid for the property but as far as having a loan on the property vs actual value of the property (sale price anyway)  I feel at least somewhat protected if the market falls...especially if it is a long term hold anyway...I personally feel almost all markets bounce back over time....BUT if we paid retail for the property and rely on the cash flow...forget it...I would never get a nights rest for fear of owing $200k on a property worth $150k and for $200-300 cash flow...not for me...but I appreciate how some have the stomach for that game...being mortgaged to the hilt and pressing their bets at all times that is....just very dangerous at our age 46 & 48...I'd love to retire someday and see more of this beautiful planet! 

Once they are living in the unit some tenants can stomach smaller increases better.No legal advice given. 

If you can stomache the property taxes then yes

I would go as far as taking cash out to invest more if you can stomach the risk or at the minimum pay down any other higher variable or fixed loans on your other 5 properties.