Some people will say leverage, leverage keep growing but it depends on your risk tolerance.I would keep in mind the global cash flow of your portfolio, because while a few properties not cash flowing is fine, if you have 30 and none are, that would be concerning.

Option 1:30 Year FixedLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.225Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $2,018.76Broker Fee % 1.25Cash From Borrower $78,081.01Option 2:5/6 ARMLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.025Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $1,990.40Broker Fee % 1.25Cash From Borrower $78,052.65Seems like some competitive terms - nothing out of the ordinary that I see.

.- Competition can and actually will increase in bad times, because people who own casually for second homes will try to get something instead of nothing by listing their properties for the first time.- People will fight to give everything they have to keep their primary residence, but if their second or vacation home becomes a pain in the rear, they’ll sell.

I do know that it is very easy to make tax lien investing sound great but it is a tough competitive business.

Paying all cash was simply to have a competitive offer and get the property at a discount.

Don't forget to look at the rental comps as well, closed and available to see what your 'competition' is up to.I always go for a mixture of tough/durable and nice fixtures in my BRRRRs.

You as a buyer, need to be willing to be competitive in a competitive market, and that is where a great agent will shine.  

If you're planning to invest less than $400-500k USD, the properties you could find within that budget will not stand out in the market, and you'll face high competition in the STR (Short-Term Rental) market.

Always push for the bidding war, it will push the price higher than what anyone expects due to the competition overwhelm that buyers get and push the property to new heights.

@Sam Newell -- The CAP rate and COC returns through FIG's new 4-plex constructions are the selling points in what is otherwise a very competitive rental property market in Salt Lake and Utah counties.