I currently work full time in hospice as a chaplain and occasionally help families through times of crisis, grief, loss; feelings I imagine might be felt by a homeowner going through default. 

@Baris Berk Lots of people have hindsight bias exacerbated by a misunderstanding of the 2008 Financial Crisis that drive them to expect when RE prices get to high the bottom drops out everywhere. 2008 was a credit bubble that drove a Real Estate bubble.

My father did built his own home to mitigate 20%+ interest rates during the savings and loans crisis in the 80's. 

A serious injury on your property could leave you in a financial crisis even with an umbrella policy. 

1.EquityIt's not a surprise that the stability in the market over the past decade since the sub-prime crisis can be linked to the elimination of NINA and NINJA loans.When investors must have a skin in the game,speculators leave the industry for the real professionals who actually know what they are doing.Speculators belong in Vegas.True professionals don't hold 90-100% of their portfolio with less than 3% equity.That's a suicide party waiting to happen.We are not a fan of this whole "creative financing" and "No money down (NMD)" movement on BP.It's cool if it helps gives some average Joe their start in real estate,but when it becomes your sole strategy,you will surely get eaten when the apocalypse arrives.We currently hold all assets in a 25% Equity position.You don't have to be the only one coming up with equity.Find partners.Skin in the game is where it's at.There's a good reason banks talk of LTV and DSCR  when you apply for loans.The new government may get rid of all that as part of the coming repeal of all those "evil" regulations.Currently,on many of our duplexes,rent from one unit alone covers the mortgage payment.We believe that to be almost recession-proof.2.Location!

I only owned one investment at that time, AND I had that particular property on a 15 year amortization, I still cash flowed on that property about $90/ month through the whole economic crisis.

You are now assisting to a values rise, nevertheless the reference asking prices didn't get to a before crisis value...

Ten years ago, the FBI reported on the scam on house stealing:https://archives.fbi.gov/archives/news/stories/2008/march/housestealing_032508During the aftermath of the financial crisis, vacant homes were the target for burglars (copper is valuable).

The next downturn will have many investors on BP in a financial crisis with some losing the house they live in because they bought sunshine & rainbows instead of investing the right way in Real Estate. 

On average over the last 45-years, the Denver real estate market has grown steadily at a 6% rate with the "cycles" lasting 17-years,The 2008 crisis was a long time in the making.