The place may appreciate, but may stay flat or even decline.  

My recent experience was that a bank declined to do further loans with us, suggesting that they did not want to be our only financier.  

It can happen of course, and that's why it's important to always be sure you are buying in growth markets and not declining markets, but I don't think it's a humongous risk in most markets right now.

So basically wondering if you think that these coming commercial foreclosures will mean greater price declines on 2-4 unit properties.

July 2009 is the latest Case Shiller data, and it shows a 10% decline from July 2007.

Some things to me are obvious, like (1) don't invest in economies that are diversified (2) invest in places like college towns, since there's always renters available (3) do invest in places that are growing (4) do not invest in places that are declining. 

If after you decline their application and they should decide to push the issue, you can ask them to show their proof of rent payments for the last 2 years (or however long you want to go back).

Other investors have approached me as a Realtor and I will kindly decline their offer should they use other agents.

Neighborhood is average quality, but property values have declined 5% a year, for last six years.These are my initial numbers:4 one-bedroom apts.

:) Are you preparing yourself for the inevitable decline that always occurs after a run up, or do you think it will continue for a long time?