Any little glitch in the market in those cap compressed areas and you can be upside down in value fast.Other parts of the country that have higher caps, lower per sq ft, and good areas have more safety built in for market shifts.     

Consequently, the focus shifted towards property management as a key driver of improved operations.

This is especially true to the recent shift in the market due to the interest rates and continue to change and will continue this year.Happy to hear others thoughts.. 

Most newer investors are more interested in cash flow and then shift to more stabilized assets that may appreciate more over the long term.Personally, I took the opposite approach and bought in stable markets I wanted to live in with little to no cash flow, but I could afford to do so and was fine with that.

But the market might shift, and the experience of a growing number of the operators using this technique is thin.  

Seems a little tight if we want to refi and there's a market shift or the appraiser is having a bad day and we don't appraise at the exact amount.

Many of those "deals" are the ones you are hearing about now having capital calls and foreclosures.That is partly the reason why I made a shift to a less crowded niche with potentially higher returns.

@Mehran Kamari I listened to the podcast you were on...when you mentioned about your job requiring night shifts, I wondered whether you were "in the biz".

Please explain what happened in NEPA and how it shifted your guidance?

.- first.Person A will get a job  hell one shift working at McD and the other at TGI Friday waiting tables.The person B is going to network.I am willing to bet the one hustling to get money now will reach the end goal sooner even if the/she had a delayed start due to making money first.And I can provide theoretical proof.It is easy to make money when you have money.