So suddenly they become sub-prime borrowers stuck with a high dollar prime mortgage.

I know some people did really well in the last 6-7 years in several Texas cities (Austin/Dallas/Houston etc) where they enjoyed cash flow and then a sudden boom of appreciation.

The question then becomes, if the IRS sees my wife and me file MFJ (we we always have) a Schedule E (as a sole individual titleholder) for 2011, a Schedule E (under single member LLC) for 2012 with a 1031 exchange thrown in there, then, suddenly in 2013, my wife and I are both filing K-1's with a Form 8825 and 1065 (we'd file as a Partnership for a 2 member LLC) with no schedule E...will the IRS blink at that?

They do the 'I love it, it is perfect..." game then they all of a sudden can not use technology to do the application or credit check. 

Suddenly having to purchase a large number of dumpsters for a complex IS actually a reasonable "unexpected" expense, however they should have some un-allocated contingency funds in both operating and reserve accounts.

I called the applicant and make sure that wasn't an honest mistake and all of the sudden she got very defensive and started calling me discriminate towards her application, major red flag and I denied her and blocked her and that's the end of that.

Higher amounts of leverage amplifies your gains, but also amplifies any potential losses making it generally riskier if the economy suddenly turns for the worse. 

All of a sudden the low interest loan didn't look so attractive any more.So I would say, if you qualify, awesome, they will probably beat any other lender's rate.

You could have a job transfer after you closed one and have the need to move and purchase another owner occupied house in another location.You could suddenly take on your sister's five children after she passed and have need for a much larger house.The reason has to make sense and be verified on paper.

.- A surge of people are leaving the city due to covid and employment options to work from home.