Looks like a decent working class neighborhood with some commercial businesses thrown in (I actually like that Verizon is across the street, fewer people, less noise, less traffic on weekends).

Todd Dexheimer Brian Burke , when you say “get started with smaller properties”...I assume that you don’t mean anything with fewer than 5 unit, correct?

South of I10 they consider to be a much more dangerous risk in terms of hurricanes, and they charge triple for the dwelling insurance if you're south of I10 regardless if you're 100 yards south or 2 miles south. 

Hard to comp houses are dangerous.  

Nancy, the best long-term rentals are in unincorporated aareas of the counties because they have fewer taxes (in general)

There are fewer preforeclosures compared to five years ago.

I think as new investors we see the dollar signs and walk a dangerous path that could put us in legal trouble when following the so-called real estate gurus.

I am concerned he is walking into a mistake, what are some of the threats or dangers he should be aware of when considering this option?

People do it...but a property can sit for a long time if it's not purchased right and on the right block... a lot fewer buyers. 

I would be shocked if prices fell in MF by that much...or even 10% from where they are now.Usually the rental market dictates what prices are for MF...how high rent currently is, and the vacancy rate overall.In my opinion, the only real danger we are in if interest rates sky rocket, and the oil economy takes a major hit.Anything is possible, but I've been hearing doomsday sayers in the RE market since late 2015, and we're still alive and doing well.The important thing is to position yourself well, and never bank on an appreciating market...rather methodical moves to manage and grow your money.