That first lender is incorrect.

Different cities have different quirks on that stuff, but you really don't know what you're getting into until you've got that.

However the statement in the post Socal is not favorable for long term buy and hold returns is HISTORICALLY incorrect.

So if any of that information is incorrect, I'd appreciate some insight, so I can present more accurate numbers to a lender.

I think I incorrectely posted this in the renters section of the site, so I'm trying here.  

I grew frustrated with agents treating me and my rental investment business as one of the many clients and giving incorrect comps (which can change a plan from a quick flip to a hold (rental)). 

They tend to be really pushy and used incorrect comps to make the quick sale. 

Or did you word that incorrectly?

However, if you are incorrect and you have a negative cash flow property you bought because you thought you would make it back in equity and the market turns down you will eventually fail6) Over-leverage - If you buy too many properties and something happens (market downturn, property problems) the bank will foreclose on you.  

So if you don't close, you pay nothing it sounds like.I personally think that's incorrect.