You should not see the dramatic decrease in value that some markets are experiencing.

How does it actually decrease the chances of a fire or a shock?

From reading Schaub's two books and doing some online research, Pre-foreclosures look interesting to me, especially since FL has some of the higher foreclosure rates in the country right now.I would imagine that the depressed values, increased foreclosure rates, and slightly decreasing interest rates would allow me to negotiate the terms of financing on a few houses.

I took the taxes off the county appraiser's office for 2013, which have steadily been decreasing to arrive at that number in 2013.I've guesstimated the insurance and utilities because I did not think to get a quote (duh!)

The other side of that is that so many investors have rentals on the market it has added to the rental supply side which will tend to decrease rents.

More of my clients want to get in while cap rates are good versus the debt that can be obtained on the mortgage.This SPREAD is what helps the returns.I am seeing interest rates rising for multifamily and cap rates decreasing over the next few years.

If the tenant gets divorced or loses a boyfriend or girlfriend and space requirement needs decreases substantially then they might move to a much smaller space to save on cash.

But while "free and clear" may decrease the risk of loss from negative cash flow or losing a property, it may also INCREASE the risk of you not having sufficient income and resources to meet your needs/goals, etc., because you are accumulating assets so much more slowly at lower ROI & with higher taxes.

Debt coverage, income and current liabilities/obligations at least 150%, 200% is better.Look to maintenance expense are they constant or increasing or decreasing.

I know you can get better cash flow in other areas but value, rents and cash flow can decrease.