We see elevated downgrade activity as a "stress point" when the cycle eventually turns."

One treatment will kill the adults, not the eggs; gotta go through the entire cycle. 

There is a cattle cycle.

Track record -- what is their history of performance, see full cycle exits in terms of actual returns vs projections. 2.

We know the economy goes through these up-and-down cycles, and you’ll be up in the long run.

Those investors where the properties have dried up have moved capital stacks into other asset classes in different periods of cycle recovery.I think it's great that people want to invest in lower income properties.

It is not uncommon or shocking at all for a property to go through 3 or 4 cycles of this nonsense.

They want to see 90% to 100% occupancy.Secondly if you could find a private lender they would not give out a larger secondary loan subject to the sellers first mortgage.That is a very weak position to be in.You have to be really careful in smaller towns.The fact that the seller stated it gets better with temp workers shows this might be a one to two company economy town.You want national businesses there along with mom and pop to prop up the economy.You do not want one to two big businesses and if they leave the town becomes a ghost town.I have seen this happen.There was a town where the main employer was for carpets.Many immigrants worked there and rented apartment buildings.The state passed a new immigration law and many fled the area and with construction down not as much work could be found.This led to 100% occupancy and rents going up to 70% occupancy among all the apartment buildings and rents going down.So it is critical when looking at these types of deals to understand what caused the problem and where does the town look like it is going long term.If you estimate the town will take 10 years to cycle and your goal is hold for five it won't really meet your goals plus can you harbor having a problem property until it up cycles again??

I would blame me not knowing what I'm doing...not the entire midwest.I would blame me not knowing about the city, the water...not the entire midwest.Those who blame the failure of their investment on anything outside of them (the economy, market cycle, the area, etc)...will not learn the lesson that they need to learn.

They have full estate cycle experience.