The more volatile and active the market may be the more that can influence pro forma estimates, if it's the only large grocery store in the area, there will be less concerns as to alternative uses and change of use.

Some areas have much more volatility.

Often comping these old houses, especially if its a Waldo as @Ben Leybovich discussed in his most recent podcast then the value could be extremely volatile depending on who appraises it. 

Is more cashflow via more properties in a more stable, slower growth market like tulsa better or is lower cashflow in a more volatile market with opportunities for rapid appreciation more what interests you?  

It is very possible to have a lot of volatility in you income.    

@Jason Panick You are in CA and real estate price volatility is unlike very many other places, but there's absolutely no way that I would put 8400/year of negative cashflow into a property. 

The stock market is too volatile.

I'm planning on saving for 3-6 month of vacancy, however, I see repairs, maintenance and CapEx being a little more volatile. 

However, lenders must exercise caution when considering retirement accounts as effective reserves because these accounts often•are in the form of stocks, bonds, or mutual funds;•feature significant penalties for early withdrawals;•allow limited access; or•have vesting requirements.If the retirement assets are in the form of stocks, bonds, or mutual funds, in order to be considered for reserves, the account must be discounted by 30% to account for market volatility.

I know that most people on here would strongly disagree with me on that but with my personal situation - I'm a self-employed entrepreneur with very uncertain and volatile income from year to year - I really don't like the idea of having a bunch of mortgage payments.Hey @Ali Boone  , thanks for chiming in :) I've been looking at turn-keys in Memphis, Houston, Dallas, Toledo, Dayton, and Birmingham.