I also think most markets won't see anywhere close 6% cap rates (for single family homes which is what I personally invest in).The questions you get to ask are then:Is the extra 4% worth the hassle of management and lack of liquidity.   

CA doesn't have an extra $30b/$40b laying around to do that, not to mention the additional billion to actually do the project to be build ready. 

Have the extra cash to really enjoy getting to know Europe.  

After adding an extra bedroom and bathroom and rehabbing the house, I was well over budget.

Living in one unit and renting out the others could offset a significant portion of your mortgage, giving you extra breathing room as the sole income earner.

Quote from @Chris Seveney: Quote from @Jason Monaco: I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales.

You are not going to qualify for active and will not get any extra depreciation.

Investors at this time should be extra careful

Something like a house hack, rent out extra bedrooms in your unit, rent by the room, mid term, short term rent the owner occupied unit on busy weekends (and go stay with friends/family)...get really scrappy.

If you’re using leverage, be extra cautious with your underwriting to ensure the deal still works at today’s rates.Economic Uncertainty: Inflation, potential recessions, or shifts in demand could affect rents, vacancy rates, and property values in some markets.Increased Operating Costs: Rising insurance premiums, property taxes, and maintenance costs can cut into profit margins, particularly for buy-and-hold investments.Regulatory Risks: Some areas are increasing restrictions on landlords, particularly short-term rentals.