Risk is debt, not volatility.

Stockton looks like especially volatile RE prices relative to other areas, so I'd rather not be buying in that kind of marginal location, this late in the cycle..

I just read the Apartment report for 2021 and every market has different volatility.

He probably told them his plans to BRRR(buy rehab rent refinance) this property so they're trying to see how probable the execution of a refinance or how probable he will be able to refinance is if they lend him the initial hard money to acquire and rehab the property.I've done a lot of pre-approvals with hypothetical future rents and take outs for HML (Hard money lenders) in the past and their concern when the market is volatile is if this buyer can pay us back or not and the potential pitfalls.

I actually like the idea of being able to get in a rental often to better stay on top of upkeep.I imagine in can be a more volatile market.

It’s a bit of a vicious cycle bc tons of LTR investors searching for yield have pivoted to STRs and are happy to take ~10% COC returns since that beats what they can find today with LTRs … problem is STRs are much riskier/ more volatile, so in theory investors should demand a higher yield than this to hold these assets (but most folks aren’t thinking in this much depth).

The market has been quite volatile and if you are putting 25% down then if your credit is solid a lot of deals are cash flowing again on DSCR, especially if you pick the right market

They hold a high correlation to the broader stock market, so not the best diversification, and I have seen data they are actually more volatile than equities, but you don't have to be accredited.  

Mars is known as the "God of War" like that of mythological references and can be very action oriented as well as carry a triggering, aggressive, or volatile energy on Earth.

They are do volatile and market dependent.