I have lived in Midland my entire life and feel like I have a good understanding of the bubble this area is in with oil and gas and how it affects home prices.

The next downturn could be a repeat, if the subsidies dry up and the dumb money stops coming in, propping up prices. 

A foreclosure will take much longer to complete and affect you much longer than a short sale, so "letting the bank take it" is probably your worst option.

Are you finding that the higher rates are affecting your cash flow projections or acquisition strategies?

From there every 20 point increment affect pricing differently.

They all lead to a significant negative monthly return due to one or more of the following reasons:1) Asking Price is too high2) Traditional loan rates (FHA and Fannie Mae) are too high and affect total debt payment3) Existing rents are too low, so loan underwriters won't approve.4) Market Rents aren't high enough5) I would like to use the minimum down payment with FHA (3.5%) or Fannie Mae (5%).So, from all of these attempts, my understanding is the only way to make a house hack work in this region where I would at least breakeven on a monthly basis, is to purchase at a significantly lower price, lock in a nice creative deal or bring up my down payment to at least 20%.

This process helps find any problems or risks that might affect the business.Now, don't get your financial due diligence and property review mixed up.

This may affect value or time required to sell.7) Adding an ADU does not make the property a duplex.

Also keep in mind that if you write off a bunch, that will affect the income that's used to qualify you. 

From there every 20 point increment affect pricing differently.