While the author does not try to come to a conclusion about prices in the future (that RE prices should be less vulnerable in another downturn because their should be less distress, given the lower ratio of mortgage debt to income..?)

Obviously Florida had it´s fair share too, but Dubai is way more speculative and much more vulnerable to external shocks.

Buy and hold rentals seem like they offer a great ROI (maybe even better than stocks) with the added benefit of not being as vulnerable to temporary 30%+ drops in value.

They are worried about how the loan will be handled especially if its a low-value home housing a vulnerable borrower.So most institutions prefer to package up the loans and sell them to another bank or non-bank mortgage specialist.

No cashflow to speak of, and the first time you go vacant, you'll be so desperate to get it rented that you are vulnerable to picking a lesser quality tenant just to keep the money flowing.  

I think the higher-end are more  vulnerable in this market..

And I don't think this makes you vulnerable to the tenant.

I'm sure you would prefer to buy it yourself with owner financing but I think you would be putting yourself in a vulnerable situation.  

Too many people see litigation as THEIR "way to wealth": find someone vulnerable and use the courts to take everything you can get from them.I do NOT advise waiting to save your own money.

It's a domino effect and usually the poor and most vulnerable in society pay the price.