I don't get into an investment property planning on a quick appreciation hit and then selling before I am underwater.

With leverage, a price drop means you can pretty easily lose your down payment, and then start going underwater.  

I was way underwater.

TK providers switch the usage to an investor & they start underwater because they bought the wrong way, the wrong approach to value.

I have pretty high equity cushions in each property, so I can absorb a pretty good value drop, but even if my properties did go underwater, One hidden benefit of using this BRRRRR strategy is that each property is top notch and desirable.

Then going home and researching the property trying to find the owner/tenant just to come up with a property that is underwater, 2-3 liens, passed away or simply walked away.

the 20% down no appreciation rental real estate purchases of the last few years are already underwater if market just drops 10% from what they paid for them the other 10% will be eaten up in settlement charges.. so there goes the investors downpayments..

Even worse during the 2008 crash with property values dropping, many people were underwater, so the property subtracted from net worth.

I was significantly underwater during the Great Recession.

I suppose if you were that underwater they might seek to obtain a judgement against you...That should be part of the reason for investment conventional loans to require 20% down...