And if the sponsor isn’t good enough for the debt lender—the safest segment of the capital stack, why should they be good enough for the equity...the riskiest part of the capital stack?

I think you have two very distinct things going on here.. you have folks that have no real formal real estate training and they are simply investing in rentals.. and then someone like me who is in the business owned real estate companies owned mortgage companies own's a building company .. and HML company.. all related to real estate but not one dime comes from rental income..

@Linda Weygant @Kevin Coggins  when he mentions negative gearing that is a distinctly Australian term.. for whatever its worth you will not hear US investors mention that or even know what it means. internet is a wild thing.. when you can create all these persona's.

The healthy, wealthy, and wise distinction is genius and I can review this book for the rest of my life and still gain something new every time I look at it.3.

All segments of our population must be served, housing is not an option and your target market will be unique.

To place in the top 1 percent of Americans, they would need to bring in at least $389,436.But do either of these comparative distinctions make you wealthy?

But entry level $600k-$1M segment is still red hot with bidding wars and homes selling for more than list price.

We’re seeing about a pretty even three-way split among our clients in terms of behavior:One segment of landlords doesn’t seem to be aware of the changes (we’re constantly trying to update all with updated info as it becomes available) and are surprised to hear about them. 

Nonetheless I still plan on my next RE investments being in the Phoenix area, specifically the retirement areas, as I see that segment growing...plus Phoenix has been one of the hottest (pun intended) RE areas in the country over the past decade.....

The numbers look good on paper but what Caleb is saying, based on his personal experience in this exact market segment, is that cheap low rent properties often end up being paper tigers because one or two unexpected issues can easily devour several years worth of cash flow.