Like Ori has indicated, the level of pain will be highly relationship based.

Although this could be a useful indicator, I don't think this is a comprehensive enough as a lot of other economic attractiveness of a city is lost by using this indicator.

Are there specific indicators that make you have a closer look?

Anecdotally I've received a few emails from my alma mater indicating they're cutting back on employees due to financial strain (reduced admissions?

The CA market is a little bit of its own animal, I give you that, but for most of the country and for the midwest in particular we have very strong indication that we will keep going down the same path in 2021 and beyond that we have followed this year.

This ratio, called the Debt Service Coverage Ratio (or DSCR), indicates how much cushion exists in your two deals to ensure the lender gets paid.

This would indicate a likely backlog of supply.  

  * Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) * Don't allow for your own independent property inspection * Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) * Require you to pay for any renovation upfront * Sell only in cheap. low end neighborhoods * Don't accurately represent the neighborhood/property classification * Don't have consistent rehab standards for all properties * Don't provide a scope of work for the property * Can't provide references of repeat investors Hope this helps.

While it sounds tempting to accept that much cash up front and parlay it into something else, this to me indicates something is off.

The fact they are even asking indicates they are probably living paycheck-to-paycheck, whichis a red flag.