@John Arendsen After the recession Silvercrest removed their "Superfloor" department from their Corona factory, which was literally the foundation of the Lido Units; also, changes in codes in HCD make the units illegal to final. 

Originally posted by @Jd Martin: The spread on the rent to investment is what makes this work; if rents were to decline by 15-20% it would cause some serious damage to profitability, if it were even still profitable at all.This is the part that would worry me the most - when you put in what I would consider to be 'real' expenses (not the first 3 years after a full rehab numbers) and drop rents to what I would think would be realistic for any one of the recessions that could happen in the next couple of years....all of a sudden you're staring down the barrel of multi-million dollar triplexes that are bleeding money, and likely in a market that could make them tough to exit from at what you expect right now.

Another thing to consider is the even during a recession/crash, no matter how bad the economy is nationally, the 30,000 active duty soldiers here and their 50,000 dependents will still get paid.  

I personally prefer southwest area (Rhodes Ranch, mountain edge) for SFH it got hit hard during recession but it bounce back and its one of the good neighborhood and strong rent growth.

For someone that's not as conservative, or a different view on the next recession, they might have a different opinion than me on all of this2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

Updates include recessed lighting, quartz counters, new vanities, new fixtures, and a fresh coat of paint throughout.

The cash flow on my direct owned real estate portfolio was largely unaffected during the last recession...my rents actually went up some.

I still believe rentals are very recession proof like @David Zheng mentions.  

You know that we may already be in recession, and a bull market can only last so long.

(Tends to be a recession after that..)