Where is said, among other things,As prices rise and rise, the pool of potential buyers for those properties shrinks.

If inventory shrinks as interest rates rise, you have two opposing price factors affecting the market at the same time.

Where I live, most of western Washington specifically the Puget sound has a low cash flow due to the shrinking 1-2% properties. http://www.realtytrac.com/news/heat-maps/rental-returns-and-cash-flow-heat-map/

Knowing everyone has d/f situation, but increasing in property tax shrinking monthly CF in good B class areas-- which makes me ask this question. 

Flippers are starting to struggle because their inventory funnel is shrinking.

So that spread between a non-rehabbed home and a rehabbed home shrinks or even becomes non-existent.  

Sure you can do the deal with a contractor or another investor, but then your renter/buyer pool shrinks in size.

I'm not in an area where the property prices move much, so it would mostly just be my mortgage balance shrinking over  time.  

The market takes an upturn before you are able to repay the loan back so the money is being put back at a higher cost per share, thus shrinking your overall position in your investments.

Your pool of potential renters will shrink dramatically once you tell them everything up front.