Banks then are empowered to issue out "money" via loans, which are not $-4-$, as banks operate on fractional lending.

Nobody draws out $80k on a HELOC to let it sit on the sidelines at 4.5% interest unless they are nuts.As @Matthew Olszak suggested....if I were to rent to a family member for 6 months and then sell it to said family member I get all the downside protection with a fraction of the skin in the game.

sexy, if it's detracting from your quality of life, one could argue it defeats the purpose; I personally know investors that went from owning 60+ SFR's with debt to selling most doors in order to own a fraction of them free-and-clear for the peace of mind and ability to "sleep better at night."

Note the S&P500 has produced almost a 10% return of the life of the S&P500 for a fraction of the effort.  

The mortgages were not paid and went into foreclosure, resulting in losses of over $3 million since the lenders were only able to recover a fraction of the outstanding mortgage balances when they sold the properties after foreclosure.This prosecution was brought by the Mortgage Fraud Task Force, made up of investigators from the Federal Bureau of Investigation; the United States Secret Service; the United States Postal Inspection Service; the Department of Housing and Urban Development, Office of Inspector General; and the Lansing Police Department.

My broker charges $675 per transaction + a fractional fee for E&O insurance.

-You Have The Flexibility to Experience Life In A Different WayInstead of spending the money on college, you could spend a fraction of it on traveling the world, doing a gap year, joining the peace corps, going on missions, etc.Those experiences are extremely beneficial for your personal development (but as a heads up without college, you have to be self-reliant on cultivating your own personal growth).

Yes, but home prices in Seattle are a fraction of what they are in the Bay Area, so the market here would be more resilient.  

Don't worry, I have many more... these are just a fraction of issues that GOOD PM's will bring to the table.

IN CA you can fractionalize a Trust Deed.. so it allows someone to get in the game with a low dollar amount..