The downside is that these assets are volatile, especially in the short term.

I would agree with Thomas S. that just borrowing money and investing it isn't going to get you the money you want to have.In Silicon Valley less desirable homes are more volatile.

It is more volatile and less to do with skill.Bottom line, MF cap rates are low because they are better investments, that is not my opinion, that is the market speaking. 

I say this because: 1)If you dollar cost average and buy property both when the market is up and when it’s down you reduce your overall volatility/ the swings in prices of properties that you purchase2)You will continue to gain experience and be more equipped to handle more upcoming deals3)You are making $300 per month cashflow (I think this is probably the most important).

There are a lot of good fundamentals: population growth, several stable industries (federal government, universities), one more volatile industry with major possible upsides (oil/gas), and most important for the real estate investor, attractive price rent ratios, especially as compared to larger urban areas.The major thing I've seen that gives me pause is that rents seem like they've been pretty much flat for the past several years, presumably following the oil/gas price crash.

In our area, rents are far less volatile than RE values are, so we try to buy properties that will cash flow no matter what.

In fact, as long as you don't over-leverage yourself or do dumb things (i.e. sell when the market is down) RE seems quite a bit less volatile than the alternatives -- I say this as someone who weathered the 2007 crisis. 

Investing money in a volatile marketplace with no collateral is a recipe for disaster. 

One reason not to invest in Las Vegas is that it is one of the most volatile and severely hit markets in the country.

.- Your property has generated substantial equity in the past few years- You are an active investor looking to maximize your net worth aggressively- You're willing to move those funds into assets that are less volatile (i.e. markets that don't go up or down as much) but with higher residual income until your next opportunity to invest in equity arises.