It's usually a spiral by then.Hope that helps.

If they experience unscheduled maintenance, high foreclosure rates, or start to enter the condo death spiral you need to know about it. 

But, you're right that entry-level farming is very difficult to get into, which is why local ag is in a death spiral all over the country, at the same time that the city folks are begging for local organic food and willing to pay top dollar for it. 

That can work well until major repairs are needed- then the owner may not have sufficient resources, and the property can begin to enter a death spiral.

Oh I wish I could divide it, and sell to a builder...you bet, it would sell for ALOT, but the zoning dis-allows it =/Yes, I agree we havent hit the end of the downward spiral in CA, and esp in this area, it is all over the place.

Property management, reserve funds for unexpected repairs, tenant issues, the market might be hot right now but in 3 years it might be in a downward spiral, etc...Not trying to say that buying for the purpose of renting is a bad strategy, just saying that there is a lot to consider before getting into it.Some of those reasons is what has pushed me to bring my clients mainly properties that we are going to either tear down and build new or remodel.

This creates a downward spiral which few locations ever recovered.

Trying to decide complicated I want this rehab to be.At the end of of my 1 year occupancy I will have a spiral staircase built from the 1st floor unit into the 2nd floor unit so it will be combined as a 3 bed 2 bath unit.Utilities are not split but I am going to be with my inspector and plumber later to find out if i Can.The market is a great rental market.

It then becomes a downward spiral of low property values attracting low quality buyer / tenants and owners which leads to lower quality tax payers.Through the lens of a #Califoria investor, It is often alluring seeing these price/unit vs rent/invome.

Conversely is a big employer on a death spiral and been laying off 50% of it's work force over the last 48 months?