You have to with your own comfort levels and consider external factors.

You have to treat external economic factors as gravy because you cannot control them and you certainly cannot count on them.   

I am not sure if I can post external links here but this should point you in the right direction.

I believe many of above mentioned external factors have exacerbated this cycle, but it's far different then 2006.

The problem is that, if they don't sell enough, like in Rich's case as a result of unpredictable external events, they will have to stop construction.I'm extremely risk averse and I will do anything to protect the interest and money from my investors.

As I was doing that the county restructured and property taxes went way up killing most of my profit on the ones I hadn't sold yet.So I would probably not try that again unless there were external forces I knew about that were already working to change the area.My suggestion would be to get very familiar with the local government and chamber of commerce in the area and see what is going on.

The risk is not external it is internal.

It ties into goal 4 but I allowed the external world to effect my mindset too much.

The property was also secured with steel shutters on all of the external doors and windows.  

Not sure if they allow external links on this site.