Worst case, they decline or not respond. 

Or do I ignore the potential price declines and stay focused on cash flow?

The more units, in my experience, the higher the expenses, as the tenant quality declines as the rent per unit declines.

Houses in North Liberty did not really see much decline after the 2007/2008 crash. 

And if/when rates go up, property values tend to stagnate or decline anyway...It sounds like you are also only considering conventional financing.

One problem to be aware of is declining admissions at Keene State, which is one big driver of the rental market in the southern downtown Keene area.

Or is it a declining area, that might sell for no more than you paid after holding 8-10 years?

On the 5 year assets you can accelerate depreciation with double declining balance so instead of getting 20% depreciation per year on those assets the first year is 40% of their initial cost basis and then 40% of the adjusted basis in later years until fully depreciated.

I am dealing with 3 different applicants with following situationsa) one has 7 kids of her ownb) other has 3 kids of her own and 5 kids from foster care (she get a check from welfare for foster)c) last applicant has felony (of 6 year old)My questions:-1) Is it legally OK to decline 'a' and 'b' based on number of kids?

You are taking on further risk if market declines- this was risk that the bank was previously owningScenario-2: Not paying off mortgage entirely, paying interest, and using your available cash for a new property.Pros: You will have 20% more available cash than Scenario-1, thereby more purchasing power for your next deal.