The numbers look good on paper but what Caleb is saying, based on his personal experience in this exact market segment, is that cheap low rent properties often end up being paper tigers because one or two unexpected issues can easily devour several years worth of cash flow.

I attended a seminar back in August and they had a segment on water.

Once you do that do some research on the most reliable vehicles in that segment JD power is a great resource.

This will vary with tenant class, but generally speaking I think the most at risk segment is the super levered cash flow is king rental crowd who have scaled fast to try and pile up the $200/door.

One of the problems is that Corona virus has a higher mortality rate currently for the older age segment of the population.

There are so many segments to this game you need to be differentiating between commercial-storefront, commercial residential, SFH, SF rental, geographic location and so on.

Of course, if you were in the half of the population that voted the other way, then I'm sure that doesn't make you feel any better...I was just saying that the overall cost  / benefit of partially carrying the people at the bottom isn't a net loss - you're essentially creating subsidized employment and business opportunities for the whole community, by injecting capital into an extremely active segment of the economy. 

Most of my tenants are drawn from this segment of the population and related professions.

Of course you have to know what your doing in this segment as well.  

The segment between 250k and 450k is the most competitive.