In Real estate, it's 90 percent predictable.In appreciation city:So you need to buy place where it appreciates a lot , DSCR > 1.0 + use 15YFRM is recommended or 30YFRMIn cash flow cityYou could buy anything with higher cash flow and use 30/40YFRM (don't use 15YFRM here)  This is my own calculation how much I make from 500k house in CA compare to $100k cashflow MF in Wisconsin:net cash flow + appreciation for CA: ($200*12)+($5000*12)= $62,000net cash flow + appreciation for WI: ($700*12)+($1666*12)= $28,400This is indirectly how the cap rate works, I don't count the equity building like you said because the LTV is predictable and would be the same regardless the location of property.This is why also when you have two set of very different problem, you arrive with two set of different solution.Do not use Cash flow strategy IN appreciation city.Do not use Apreciation strategy in Cash flow city.

If the market crashes or something were to happen to you as investor, the banks are going to want to target someone who has a ton of equity in their property vs someone who is more leveraged.

So if we do have a small crash or large correction across enough markets, and rates came down to 4-5%, the people who are selling now at the discounts you are referring to will seem foolish as the valuations stabilize/rebound. 

They responded by calling me a tattle tail, said that I was way out of bounds and now, 4 months later there is a non working boat, a crashed car and numerous piles of dog poo in the yard.

If it arrives, you will return it.

Our average tenant stay is > 5 years.We’ve had six evictions in 16+ years out of a tenant population > 1000.During the 2008 financial crash, our clients had zero decrease in rent and zero vacancies.This blog post on Where to Buy Las Vegas Investment Properties might give you more detail.The bottom line is that properties do not pay rent.

I have experience in note purchasing from the days of the crash, 8 to 10 years ago.  

To illustrate my point, let's look at the last major crash in housing prices.

Not sure if prices will just keep rising or if a crash is around the corner.

Can you crash and burn?