I think the market problems California is facing right now have a tremendous amount to do with the creative financing and speculative investing that has been rampant in California the last five or so years.

That seems plausible, but also speculative to me as no one knows how long it will take for oil to come back around.

I could speculate that it's because THEY are speculating about the disconcerting Silicon Valley VC news, but I cannot prove that. 

While not a lender myself, nor an attorney, I can say that many of my former CRE industrial clients have bought buildings that they originally occupied 51% or more and then either bought another larger building to accommodate growth or reduced in size or went out of business and leased the entire building(s) out to tenants.I think the occupancy rule is in place to discourage investors from accessing SBA loans for the simple privilege of using these funds for speculative real estate investment.

Interestingly enough, if you have followed David Greene, his opinion and strategy has shifted from his/Brandon's initial opinion of cash flow vs appreciation (not speculation).

A one minute conversation leaves nothing up to speculation.

Investing locally in the Bay is speculation in terms of hoping the market will continue to appreciate.

Airbnb hosts barely saw a bump in rents and the many speculators who jumped in just for the SuperBowl were very disappointed. 

I would like to know if there are concerns living/investing in these smaller towns.I am just guessing that people speculate that prices in Little Flower or Irvington will sky rocket in the coming years whereas no neighborhoods in the smaller cities of Indiana would do this?

With the general chorus seemingly trying to promote more leverage, BRRR, and HELOCS or cash outs for further acquisitions, I was wondering whether there was a general consensus on when it is NOT considered a wise decision to cash out refi for the purpose of acquiring more properties, especially in this rising interest environment & near correction speculation.