I've enjoyed the learning process immensly (which makes my wife doubt my sanity even more than she did before), and it made me keen to find that one REO house that, while not perfect, is not a money pit about to collapse.

I'm not saying the market will collapse, but i certainly would not invest there assuming prices will forever increase.

The contractor ran off with the money, the home was vandalized,the roof collapses,etc etc Market values can quickly change and leave the lender without protection It sounds like you don't like the rules of the game, so stick with wholesaling it is your perfect scenario and no rules to be upset with @Toyin Dawodu 

If a market were to collapse like it did in 2007/2008 you wouldn't be fully exposed to the larger swings of the B and C markets and could use the BH property as a hedge.I'm not a fan of selling A assets, particularly when your basis is low (which I assume is your case...).  

I won't get into anything that needs a new foundation, significant structural element repair/replace (rotted joists, collapsing walls), full-bore electrical rewiring, or has other issues that cannot be easily remedied - shared driveways without dedicated easements, located next to a housing project or landfill, etc. 

What about the apartment balcony that collapsed out in California?

.: What if tech collapsed tomorrow?

Diversification is the key to spreading risk should there be an economic collapse as predicted by Peter Schiff and other leading economists on May 28, 2016.

But that cycle of boom/bust of housing SALES (and typically what people refer to in valuation) is a lot of risk for most people, and the facts of the economic collapse speak for themselves.But the RENTAL side doesn't have those same boom/bust cycles.

If that is eaten away by repair costs from the get-go, the model collapses.