Typically if you are buying whole sale houses it means you probably do not have that much cash on hand so you can ill afford to get hurt financially or to get bogged down with problems that will diminish your joy of being involved with real estate deals. 

Now with the loan balance diminished and the property value up, the spread has made us have a good return... especially since our down payment was $0.

Utility on a product usually has diminishing returns - that is to say, your first ice cream cookie sandwich will be blissful, but your 3rd one 10 minutes later won't be as satisfying.Perhaps the people who chose the green button felt they'd get less satisfaction, less utility, from additional millions, and would rather take the safe - but highly satisfying - bet to receive their $1 million.Personally, I'd gamble on the red button.

Not prevent, just diminish, hopefully :)

Thinking our chances are diminishing though, the big money promises are swaying the seller, we are about 75k apart on the deal right now. 

When the vacation crowd diminishes, the rent prices fall and the prime properties are still prime but the RE that is just below prime may struggle.Today, and for the past couple years, both units of the duplex are STR all year and are booked virtually 100%. 

A few other positive things:If you have a home office it creates authenticity with the IRS and can diminish potential push-back you could get by claiming the deduction.Using an EIN helps prevent identity theft - stealing an EIN happens, but isn't as common. 

Seems as the property gets further into a lease the potential for greater appreciation based on rent rolls is diminished. 

Higher down payments are allowing for higher cash flow rates but diminished Cash on Cash ROI.

Remember that PPSF obviously has diminishing returns the larger the unit and vice versa, so it's not a perfect tool, but it should be a good guide for your purposes.