For example, a typical 10 CRE year loan will result in roughly 30% of the principal being paid down after 10 years, which can provide significant cushion if the property value goes down and you decide to sell.

That, to me, is the difference between an investor in these markets vs. a speculator that just buys at retail with little down and hopes the market goes up but has no exit strategy if it doesn't.To the 2nd point of taking advantage of volatility, if you are disciplined about buying and fixing right to create a strong equity position, and not buying when you can't, then not only does market volatility matter less, as you'll have an equity cushion, but also buying in this way will tend to do your market timing for you, as good deals are more plentiful in a down market.

At say 250k, that's a 50k down payment at 20% and we could snatch up say 4 of those if they penciled out and still have a lot of cushion left in the bank.It's really great to see everyone's varying opinions but so far it looks like the people that live in this Southern CA market are advising to hold this property and leverage it, whereas many from out of state are leaning towards sell and get the heck out of CA.

When you eliminate all the padding and cushion for unexpected events, its not a matter of if but when something happens and pushes you over the edge.

  $100/door does not lend to much cushion in a downturn where you could have decreased rents and a high level of vacancy. 

But if you really looked at it with an unbiased eye, you would see that other areas provide more cushion even if means paying more.

If you have enough cushion in your rent, then figure out how to make your spot special compared to other apartments.  

I know going in that I have a 25% or more cushion so that, if need be, I could fire sale the property just to get out instantly and break even.

I recently used the thinner HD laminate in bedrooms on a recent acquisition where the previous owner put down cushioned vinyl.

That way you can have a slight cushion and build up a war chest to prepare for capex.