We were somewhat immune to the downturn as compared to other markets.On a more micro level, I look for things like:- Strong school systems - Big box stores moving to the area- Residential development in the area- Ratio/ demand for housing- Population growth- Job projections- Foreclosure/ Short sale inventory- Steady increase in median home sale prices- High volume of Hard Money Lending :)Just to name a few

@Aaron Knoll  yes and noYes because it's a total seller's market right now.No because there are deals out there, it's just harder to get them now compared to a few years back - and No because while we are certainly not immune to the drastic swings in the market, the swing isn't quite as drastic here.I feel like there are a couple factors at play (this is by no means scientific, just my gut feeling of what I'm seeing out there now):Because it's a seller's market, IF (and that's a big IF) a property is priced correctly, there's no reason a seller should take a low-ball offer from an investor when there's a pretty good chance an owner occupier will come by and offer 95-97% of list.

Living in NYC, everyone is always telling me how crazy I am to not buy in NYC given the price appreciation that we've experienced over the last 10 year in particular - but I'm not sure that either market is immune to price depreciation even with foreign investors stepping in to sop up any excess inventory at ridiculous cap rates. 

Newly rehab properties aren't immune to maintenance. 

Your just hard pressed to find anyone to acknowledge or admit it.we had one ( one of my clients here in PDX) were he was doing a pop top and full gut underneath house fell in on itself.. no chance to recoup.. 80k loss.. gave it back to the first lender. who was loaning illegally in Oregon @Nghi Le probably knows the company.and in Tyler's home town I personally foreclosed on over 200 SFR's that out of state folks bought prior to 08  could not make a go of it and lost it all... rentals are not immune.

Multifamily is not immune to changes also and has risks associated with it.

Everyone knows cap rates have compressed in recent years, are they somehow immune to market forces that would push them back up?

I had clients with 4 plexs in PHX that sat completly vacant for year or more.. there simply were not enough renterssame with other markets.. so the thought that cash flow rentals Levi T. are immune from dramatic changes in the market place is flawed thinking.. some areas no problem others there where complete meltdowns.  

Don't think your units will be immune to problems.

It would be interesting to try to evict someone or collect a judgement with diplomatic immunity in play .