Be a thinker, not a yes man (I think that a danger exists for those who listen/watch too much TV and talk radio, one forgets how to think critically, instead blindly parroting the opinions spouted there and taking ownership without critically analyzing motive, bias, incentive, wisdom, experience, etc), be a leader, not a follower, be a doer, not a talker.Tony

Dodd/Frank legislation gave us that distinction. 

Is it legal to discriminate against specific "dangerous" breads, as defined by the insurance company that covers the property?

your not investing 5 states away and trusting others to secure your outcome.I totally agree that if you live in these markets and want to build up a large portfolio over time of cash flow rentals and its your business it can work very well for the owner operator or small group of local investors.. the danger zone is  buying 1 or 2 or 3 of these homes far from were you live and thinking that this is a long term wealth strategy...

I'd like to buy a multi-family, but there's not a whole lot around me that are available (and in a non-dangerous neighborhood).  

They are perverts that are EXTREMELY DANGEROUS.

Good distinction Will.

Just this year, one of the houses had a collapsing septic tank which I had to have removed as the backyard was getting a sinkhole making it a danger to the kids playing. 

They strongly discourage all attendees from listening to experienced investors (EI) that aren’t in the Big Dog Program: The EI could give them bad information; The EI thinks he knows it all; The EI is dangerous and is not to be trusted; The worst advice is Bad Trusted Advice.

We are in no danger of a mass destruction of property values unless we had an external event such as a terrorist attack, etc that affected the entire country.