In some markets it's pretty easy, in my market (NYC) its nearly impossible, even with skyrocketing rents.

They are kept in house.Even with cash purchases, my closings costs are even less at around $1200.Now getting into Hard Money Lenders, closings costs sky rocket but that's a whole other story...Hope this helps.

However; when something like gas prices skyrocket, the cost of driving the distance to those outlying areas then doesn't make as much sense as paying higher rents with the populated areas. 

I am a new-ish investor (own a single family rental in California that I manage and syndicated a triplex in California that I manage), and want to 1031 out of my California single family, which has skyrocketed in price from when I bought, into a multifamily in Memphis. 

Now that area is full of new housing developments, shopping, and dining and the real estate values have skyrocketed. 

Just like if you get paid off early your return sky rockets, if you experience an expense of magnitude early, your return could be completely wiped out.  

As far as the condos go , I would sell them , mainly because if the associations are mis managed , the condo fees can sky rocket .

Remember that you're there to help them out.Perhaps you could ease in the notion that the lenders kids are probably going to need a lot for college as prices are skyrocketing and student loans can be lethal!

I have had success in investing in condos in South Beach, but it was all about timing.....they were acquired on the rebound from the real estate crash in a buyer's market/ Now prices for condos in South Beach are skyrocketing and the capital appreciation has been well worth the investment, even though the cash flow wasn't great (but still positive) over the years!

However you have the ability to refinance cheaply at the 5 or 6% range if you see rates skyrocketing up.