Once the refinance is done with a 20% down payment and depending on current interest rates in five years, the cash flow should experience a measurable increase.I'm aware there's a risk of the DOS clause being called, the unknown factor that their mortgage payment might be higher than I've figured if they've done any refinancing since purchasing the property and that interest rates are at times volatile so in 5 years my cash flow may not increase at all.

The major downside to mortgaging to me seems the fact that you don't know what interest rates will do.My business is in an industry that is extremely volatile and unpredictable.

The poorer areas you do not get as strong rent growth on the fixed low incomes and more turnover happens due to life volatility issues.

And @Chris Clothier is right some just want it all done for them and are perfectly happy to pay for this service and time savings...And at the end of the day many investors really are not cut out for this and would be far better served in other investment arenas as RE is just so volatile and especially with buy and hold you cannot control a tenant that trashes your unit and you lose a year or more of income. 

In a disaster scenario like that of 90% depreciation in price I would probably be more worried about guns, ammo, food, water, etc not my real estate portfolio =D.I use income decrease of 10, 20, 30 % based on how solid I believe the market is but I would say that if you have to use 40% or more then your market would be highly volatile and you may have to reconsider your stability of your income if we're talking about rentals.

As owner of the 401K you can consider this to be a non-volatile bond which pays at a rate of 2.4%. 

I now understand why the markets aren't so volatile over here and why you aren't particularly fond of wholesaling in Montreal.

I think I can make more in the stock market, but I am very focused on early retirement and therefore am more interested in low-volatility income than "high-risk, high-returns".

.$33k nets you $500/mo = $18% CoC return, with relatively low volatility.

I don't know how volatile these adjustable rates are, so I want to make sure I'm not taking over a lien that is going to sky rocket.Thanks BP!