@Jamie Turbyne, what we saw during the last recession was that prices compressed, rather than dropped uniformly.

Sometimes they weren't cleaned and filled with sand which eventually compresses together and can seap out.In short, there are a number of ways this can go wrong.

Not only will finding a buyer be easier in a high demand market but your chances of appreciation are greater especially if you can get into a market that has strong economic indicators where cap rate are compressing or trending down.

I saw a home last month where the termites ate a wood truss so bad, the weight of the home compressed that 2x8 truss to a 2x6. 2 inches of movement is a lot.

I recently built a 4,400 sq ft shop on my property where I did the GC and paid framers, roofers, plumbers and electricians then I did the rest with cabinets, flooring, painting, compressed air system, air exchanger, trim, doors, baseboard, etc. 

They’ll want a deal, they will only see the negatives and cap rates are currently pretty compressed. 

Meaning, you will have gaps and compression points that defeat the attractiveness and functionality of the flooring. 

Some of these lock-together planks have compressed wood/particle board under the first layer....so they will not last long up to typical renters.

Cap rates are very compressed at the moment and not reflective of actual cost to run a building.

Unless stabilized property is bought at a really high cap rate going in where compression can happen over the years the sponsor is basically a glorified PM taking small fees and has almost no upside as a promote on the back end.