@Cosmas Paulosi we've posted this hundreds of times, because it's very logical:)Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

@Evelyn Allasi I understand your logic when considering the area, but the University created a lot of housing over the past decade that put pressure on people with houses that they had marketed to students.

One of your biggest challenges will be separating all the online fluff from reality.EXAMPLE: several S8 "gurus" have already been exposed as frauds, but unfortunately, they sucked in thousands of investors.You're an engineer, use your education & experience to start building up a logical approach to investing in rentals:)Start with this:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Simultaneously, although I underwrite for long-term and that is the fall back, I generally do not have plans to keep long-term because I'm trying to grow differently than you are.Here are a few real examples and I will try to explain the logic.

I want to operate from a place of logic, not fear.

My market (San Diego) has appreciated ~10% YOY (source Core Logic).  

@Chris Good logically, it depends on the Class of the property/tenant.Class A property/tenant: annually BEFORE lease renewal, to make sure they are taking care of the property and you want to renew.Class B property/tenant: at least annually, maybe bi-annually depending on "vibe" from tenant.Class C property/tenant: at least bi-annually, maybe quarterly. 

Both of these will have appropriate entry points but in my opinion they aren't now.I get the logic of not timing the market, but that's why you invest in other places so you are not  missing any overall market exposure and it remains you're outright view and these cities can be hedges. 

Both of these will affect the real estate market.Should give you an idea of IF AND HOW LONG rents will increase to cover your negative cashflow.Then you can make a logical decision on whether to hold or sell.

Appreciation: Same logic as above.