Well over the majority of investors have had a tenant default.

Many sellers will not accept this since they are in second position, and it is very risky since if you default (higher probability for investors with no money and/or no skin in the game), they will most likely be wiped out during a foreclosure.

Plus, if there is a default, I'll either be bought out or moved onto a different note with the same yield. 

(They also assured me I would not take the algo hit.)I no longer default to pre-approval as for me, it's bad for business. 

You appear naturally to default to decision making based upon emotions and speculation on what worst case scenarios may be. 

What is your note default rate?

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

All real property in SC defaults to the 6% assessment ratio.

As others mentioned, you're going to have a very hard time getting a loan when you're currently in default on any kind of mortgage, HML or otherwise.

The fed's cut will be too late and they will be playing catch up, as defaults and Job Layoffs continue to mount.