From a portfolio management perspective, you may not want the capital burden of loans to diminish the performance of the real property.

Also, SFH are actually diminished returns over time.Well all that is only my opinion but for me I'm done with landlording, its just not worth it.

I like the ability to rinse and repeat using cash out refis, but worry about diminished returns on capital due to 70% LTV ratios as well as having to wait up to six months to begin this process.

My fears have diminished greatly over the years. 

The greater the excess the more the value diminishes, but it's still worth something.

Is the economy strong enough to withstand the shock of diminished military spending, which can happen with a stroke of the President's pen...?  

.- $10k closing costs on the buy/sell side = 150/195- $10k for a new roof and another $10k on flooring, kitchen, bath, and paint = 170/195- $5k holding costs for 3 months like interest, insurance, taxes, and utilities = 175/195Assuming your 195 is conservative, and without adding anything for HVAC or foundation concerns you're already looking at a $20k spread that is quickly diminishing. 

Of course the other enemy of wood is termites which can severely diminish the structural integrity of wood in no time.  

I understand that I can make my money from the sale of the property (from my option fee), but unless I pass the negative cash flow to the seller, my profit from the sale will diminish as each month passes. 

Amounts that may be received from a sale go to the owner so a lender always has to avoid claims that they acted in a sale that diminished the possibility of a borrower being entitled to excess amounts.