I've never really done a deep dive in analyzing the area because it is a retirement community, median income is very low, and there arent a lot of jobs in the area.

We live in California at the moment and I have W2 job and my wife a small online business.

However, even though they both have jobs now, they still do not pay the weekly rent that they promised to pay.

I recognize there are other ways I could invest this cash (including another property) but I am being mindful of levering myself out too much in the current environment where job losses are more common in my industry (tech).

Great macroeconomics overall - population and job growth and major companies moving here.

If they have excellent credit, great job history, great references and you met them and got a good feel. 

We wanted a better DTI.Then we slapped a large heloc on it as an opportunity fund right before my wife quit her job for good.I would save the cash. 

LOL, you're just a dream-killer with these Debbie-Downer corpse stories, Jay! 

If you are broke and trying to quit your job asap, the answer will be much different than what an acceptable answer would be for a professional investor who is a multimillionaire.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.