The FHLMC index is a "walk on water" scenario - SFR purchase 80% LTV owner occupant 1-4 financed properties. 

Unless you have a good crystal ball, though, it's all a guess as to where they will be in 5 years or 7 years.Your loan will probably be fixed for a certain period of time, like 3 or 5 or 7 years, and then matched to an index plus a spread (eg: 12mo LIBOR +2.5%).  

My spouse and I save well over 6 figure every year and invest that in the stock market, mainly index funds, broadly diversified.

Question 1 is a citizens' initiative that will (among other things):-impose rent control (rents will be capped at their Nov. 1st, 2017 level and can only go up by in increase in property taxes and the Consumer Price Index), -create a tenant dominated rent board (out of 7 members there will be at least 4 tenants and 1 landlord),-almost double the unit registration fees (from $35/unit to $65/unit),-significantly increase the time it takes evict tenants (upwards of an additional 90 days), -allow a group of volunteer citizens to impose fines on property owners,-effectively remove the term of a lease (the lease being over will no longer be reason to evict a tenant). 

That works out to $24,864 per year which is an annual cash return of 2.18% on my original investment.I could put my money in a market index fund that pays more and would give me double digit growth, plus the money would be liquid and lower risk than partnering with you. 

Is that thing even indexed for inflation?

The link has a trailing period:http://www.freddiemac.com/sell/guide/bulletins/pdf/bll042208.pdfHere's the text where they state four max:The changes announced in this Bulletin are effective immediately except:August 1, 2008For Investment Property Mortgages with Freddie Mac Settlement Dates on or after this date, a Borrower who owns more than one financed investment Property may not own more than four 1- to 4-unit properties that are financed, including the subject propertyMy evidence for why this is not a cycle just like other cycles is the Case-Shiller index.

If you do go the stock market route, I encourage you to look at index funds that have low fees.

And, Graystone finds properties with exceptional value that retain more equity upon being rehabbed.Because of a booming economy, and long-term investments in Tampa by investors like Jeff Vinik and Bill Gates, equity growth for investment properties in Tampa Bay remains strong with the Zillow Home Value Index at $213,800 for the Tampa-St.

Ups and downs with real estate, indexing funds, builder stocks, loads of ways folks can diversify into real estate with better liquidity than owning parts of small portfolios.