You will suddenly find yourself upside down in the loan, and unable to refi out.

So a cabin that was renting for $399 in a boom, but suddenly have to cut rates by 30, 40, even 50 percent in order to stay rented in a recession.  

Maybe Tom has figured out a way to make that flow better than I imagine.But if you first offer them cash for their house (and you have already disclosed that you ARE an agent/broker) and they say I really want to get more, I'm not in a hurry, I'll make the necessary repairs, etc. then you switch to, "I understand your goals, let's LIST your house instead...".If I listed my house at a retail price and all of sudden the agent/broker tossed me a "lowball offer", you would see "WTF?"

They suddenly have some repairs they want but that isn't a  problem if something is truly broke. 

Then suddenly without warning and e-mail was sent out last week stating things have changed, we're now not coming to Atlanta.

Subprime and most Alt-A went away, and suddenly it appeared no one was lending because of all the overlays. 

In many markets the prices surged last year when hedge fund activity was at its peak.

It's all part of the cycle of poverty and if you have ever dealt with these kinds of tenants you will understand.Kids grow up having their family being evicted a time or two and suddenly, that's just "normal". 

This is a LOT better than a bunch of people suddenly losing their income and defaulting. 

In three more years the loan will be paid off and the cashflow will suddenly be $30,000/year.