The recession occurred during late 2008 and early 2010's.

I used to do quite a few during the recession. 

Here is another data point to consider -- the yield curve.https://www.nytimes.com/2018/06/25/business/what-is-yield-curve-recession-prediction.htmlIf the yield curve is predicting a recession, the economy will slow and some tenants might not be able to pay their rent.

as long as things are humming along in 2022 and the dooms day folks don't have us in a recession were the houses are actually worth less than you paid for them or only what you paid for them.. then the scenario should work fine.. regardless worse case is they are rentals.. but I just would not build a business plan around some big upside and promise it to other investors.. as they may be disappointed if it does not work out as you hope..

Let's say 4 years from now we have a recession and values drop 20%. 

.• In 2016, Nevada surpassed pre-recession employment with 70,000 fewer construction jobs.

I have a dear friend (a realtor who lest that business in the recession) who now works for a foster care agency.

Fannie instituted that former requirement due to "buy and bail" schemes during the Recession, where people with underwater houses would buy a similar home for way less than their current loan balance, and immediately stop making payments on the underwater home.

@Ray Agosto, I would look into the permit costs to add bedrooms to the basement as well as the code requirements (i.e. having closets, recessed windows, alternate exits, etc).

I understand a lot of subject 2 was done post recession years and it worked great.