The rent needs to be raised in order to compensate for the increased risk and the potentially reduced return.In addition, LLs should resist placing marginal tenants into their units. 

On the other hand, prices going up means housing is becoming more unaffordable for many others.I think that Class B & C multi-family housing are one of the most, if not the most recession-resistant assets out there.

Do nothing, path of least resistance, "free" option. 

Also slum lords are generally very resistant to let the property to sell at a low value based upon its deteriorated condition. 

I have seen smaller tenants be very resistance of NNN leases.

We use to invest in residential and then multi-family but made the switch about 15 years ago and never looked back.Granted some folks would say that you ought to hedge your bets through several Asset Classes and there is certainly some validity to that, but I (and many others) are quite bullish on Self Storage, and it is what I solely focus on.Self Storage is historically Recession-Resistant, so it does well in both good times & downturns. 

Now I understand the desire to rent out your home, it is the path of least resistance.  

What's their hold up or resistance? 

My boyfriend has been resistant to "settling" for a duplex (which was initially my idea because an old co-worker did a duplex as her first step and it worked out well) and he really doesn't want to invest in a first step that won't produce a significant source of passive income right out of the gate.

And the closing costs vs. prepaids has been covered well above, but I can resist adding my two cents...