But in 3 years when the ARM kicks in, the mortgage payment will certainly go up, diminishing the overall monthly profits from the home.Option A: Keep the Home.  

What's important is to look at what markets are growing and developing at a faster rate, where is the higher return on investment, and what trends are not diminishing but accelerating at an exponentially faster pace more so than any other market?

There is a percentage chance that you will die every time you do yet you accept that risk and push it to the back of your mind.Dying is far more serious than losing your money although, as with driving, the risks diminish with experience.For new investors the only foolish aspect of using their home to invest would be to do it without first fully gaining the education required to do so. 

people overbidding daily and losing. but they were so happy they got the "reo" ... i am constantly calculating how much some of these "investors" are losing as i see their property dropping in price and margin diminishing to even and worse negative.

Over time as "crowdfunding" takes more prominence and more platforms emerge then the market will force platform to complete and given that money raising is a service business that can be commoditized then platform fees will start to diminish.

Paying cash for the properties would seem to drastically diminish cash on cash returns and leverage even at the higher cap rates, but most of what I've found is that banks don't want to touch these <50k loans.

:)That being said if you were to use someone else as property manager and once these start requiring more maintenance won't your returns will diminish?

Long commuting times on public transportation have diminished quality of life for many middle class New Yorkers as higher real estate prices have pushed them outside of the five boroughs.

And that's not to diminish the value of what leasing agents do, but the majority of their value is to their renter, and not the landlord.

Tenants who don't respect your rules will destroy your asset, waste your time, kill your cashflow and diminish the value of your property.Only collecting rent is not enough.