I wasnt aware lenders where getting so lose again with lending policies.

The lower the cap rates in an area, the safer the location, the easier it will be to rent it, the greater the chance it will appreciate, and the less chance that you'll lose a bunch of money.Following your numbers, ($1300/month rent, 140K purchase price, $2200/yr tax&ins, 7% vac, $2000/yr maint), you are looking at a cap rate of around 7.4%... which really isn't bad!

3) How do investors go into buying a property and fixes it all up and all sudden, they are the ones losing the house?

After taxes (remember taxes are based on nominal gains not real returns) you typically lose purchasing power/wealthShort term speculators may rush into any asset thinking they know the future and the efficient market hypothesis is wrong.

Hey Brian, how is your venture going with DM?

If I just let things go, I'm going to be out of pocket as the carpets need replacing, the stove and fridge need to be replaced, the tub and shower might need replacing, and a host of other things, not to mention the rent I'm losing.

What about the risks of losing such long term tenants?

Journal site was interesting. http://online.wsj.com/article/SB10001424127887324761004578282240778834074.htmlIt talks about people losing interest in stocks.

If you only lose that months rent and they leave consider yourself lucky.

So if you were going to lose money anyways, you'll lose a lot more, a lot faster.