Honestly I haven't had the time to read through this yet, but CoreLogic usually puts out some thought provoking stuff with good data and methodology behind their research.The following link provides a summary of their Q1 2013 Renter Applicant Risk Index Reporthttp://www.sacbee.com/2013/07/18/5575564/corelogic-releases-first-quarter.html

The original interest rate has to be based on prime rate or another accepted interest index like Treasury Bills.Category 2 – individuals, trusts or estate (LLC’s also) – up to three home occupant – buyers per yearno balloon paymentsyou must determine the purchaser’s ability to pay the amount owed- there are eight criteria you have to look at-current or reasonably expected income or assets, current employment status, monthly mortgage payments for this loan, payments on other loans secured by this property, payments for property taxes, insurance, HOA dues, etc. required to service this loan, debts alimony and child support obligations, debt to income ratio and credit history.

Under California law (AB 1482), annual rent increases are capped at 5 percent plus the change in the regional Consumer Price Index (CPI), or no more than 10 percent of the lowest gross rental rate charged the tenant at any time during the twelve (12) months prior to the effective date of the increase.

Type 1 precieves high risk from a high return and is actually uneasy when returns are advertised any higher than the SP500 or standard index funds.

Back before I threw in the towel on trying to beat the market makers in the stock market and switched to straight indexing, I would always pick a couple of companies in an industry or sector that I was interested in to mitigate the business risk of any one company.

:D  Sometimes I have more success with going to Google and doing searches like "rehab budget site:biggerpockets.com"; Google has indexed most of the posts here, and searches like that use Google's keyword handling - you can search for exact phrases using quotes, avoid "or" searches, etc.I think the "advanced" search here on BP gives you more options - you can search a particular forum, or all posts from a particular author, or posts before or after a certain date, etc.

If I wasn't expanding my RE portfolio, I certainly could've been buying index funds along the way. 

I invest in buy and holds, I invest in real estate notes and Vanguard Index funds.

Roth IRa’s have a ton of advantages, tax free withdrawal, no minimum distributions, you can take out your contributions only with no taxes paid and if you start rarly in your 20’s you will end up with millions without doing anything except buying a Tortola stock market index fund on a regular basis.

I plan to invest in index funds as my vehicle for appreciation.