Since our cost basis is generally at >50% of current home value, even if we have to foreclose later in the lifecycle, we can expect return of capital and most likely a profit, contingent on the performance and trends in the local market where the asset is located.

To add to some of the comments here, seller's financials are only a small part of the due diligence and are often close to worthless if self-managed.Consider the following:Three furnaces that are past the end of their useful lifecycle will have more of an impact on your returns over the near term than current leases, yet you don't ask for HVAC maintenance logs prior to making an offer.You will be managing this property going forward, not the seller.  

Especially since I'm in that wonderful phase of the teenage life cycle where I know everything ;).

So it's 100+ pages that basically go through the life cycle of a loan explaining every step of the way.

Many 401k accounts now have some kind of "lifecycle" funds that are based on anticipated retirement that make this gradual transition for you without you having to think about.

Thank god I kept good records with Life Cycle app and mileage app.

That's not to say there aren't opportunities, but it feels like we are transitioning from the growth portion of the product life cycle curve, to the maturity portion.

I think the key thing is to know that appliances will break at some point so maintaining their life cycle and knowing when to replace is very important.  

While that is not always a gurantee for quality, it was at lease some indication who you should listen to a little more.its still there if you use the old forum interface...As for the topic at hand - businesses and ideas go thru life cycles just like people do.

I've done the math on long-term returns (which is what myself and my clients are after) and a few months of lesser returns don't impact the overarching wealth-creation benefit of real estate found in appreciation, depreciation, and tenant mortgage pay down over its lifecycle.