For a PL, character is important - hence, the need to establish personal relationship.

If the "great" Greenspan can't know the future, certainly don't expect the current cast of characters to know.

As others have said here in many ways, it's a question of bureaucracy and individual tenant character for most people who don't take Section 8.

I could really keep going, but I'm running out of character spaces to write here.

You cannot judge someone's character off of their legal source of income.

I can assure you lenders look at your character, especially once you get past the conventional loans and into the portfolio loans and if become a big-time investor you will need portfolio loans. 

For properties that contain a residential structure, it is "preservation improvements" which are defined by the statute as "improvements made to preserve the property by properly keeping it in repair for its proper and reasonable use, having due regard for the kind and character of the property at the time of sale."

The 3 C's of lending are intact so if there's a crash as so many Nostradamus investors have been predicting since 2011, then it won't be because of lending.The first C is character—the applicant's credit history.The second C is capacity—the applicant's debt-to-income ratio.The third C is capital—the amount of money an applicant has.Supply and demand are the market drivers, not unscrupulous lenders, NINJA loans and unqualified buyers making minimum wage buying homes worth 500k  with $0 down on a 5/1 ARM.

IE there are some that would buy those and turn them into rentals and rent back to those losing them.. so they could keep their kids in the same school districts etc etc etc... with the way the laws were written.. those homes actually ended up going to trustee sale and all the ugliness that comes with that for the families.and of course like Ryland said it was a over reaction from politico's to save the public from themselves.and you have very marginal to no character folks who just abused the situation and caused all this in the first place..

https://www.biggerpockets.com/forums/432/topics/503289-how-to-vet-syndicatorsAt the end of the day it isn’t about deals, it’s about character.