That strategy basically turns your assets into a house of cards WHEN the market corrects.Keep studying financial history (S&L Crisis, LTM Failure, Dot com, great recession, etc) .

If the applicant has at least some savings, a co-signer with strong financials, good rental history with good references and good solid employment in a recession-resistant field then that would make me feel comfortable moving them in even even with the bad credit.

Dot com bubble, 9/11, the great recession...

Sigh.A recession is normal.

They were burned in the last recession and had no desire at all to do rental home mortgages for me. 

Plus the installation of recessed lighting etc I had my guys put up 1x3 strapping & 12 ft drywall.

Finally, we will have a necessary recession.

I personally know people who did this so they could buy property during the recession. 

After I finally left Wal-mart for a better job, I suffered a devastating lay off in the middle of the recession, and was unemployed for nearly 6 months. 

For the most part, rental markets are not affected by a market downturn or recession.