If I feel in a given market the inventory is extremely tight particulary for my harsher quality criteria, then I might conclude I am probably getting the left overs which often can mean higher risk.  

There are likely several external factors - such as the strength of the prospect; the tightness of the local rental market - at play as well.You choose not to hold units, which is perfectly fine.   

I discuss this with each guest as one of the closing questions of almost every episode of my podcast.I see continued growth in Florida barring any external factors that alter migration patterns. 

What's more dangerous than not having an external weapon??

Markets are primarily local and although some external circumstance may effect real estate across the board (financial crisis, etc), it's pretty hard to predict when one of the "external" circumstances are going to hit.  

What I disagree with is the tendency for the failure of REI to be based on external factors.

Would it just be having not to find external financing? 

While substantially cheaper than an external staircase, it's more involved than the heads and some pex...

Life is always what we choose or choose not to make it, subject of course to external factors all the time. 

Yes placement is huge, and also doing the metal piping fittings for ethernet lines externally.