Recession: A period of temporary economic decline during which trade and industrial activity are reduced generally identified by a fall in GDP in two successive quarters.Market Correction: The general definition of a market correction is a market decline that is more than 10% but less than 20%. 

Here is why.1- Unlike physical science, social science like economics is more of an art than science.

Think about this economic environment.

Forecasting economics is anything but easy or simple. 

Take a look at things like whether the business plan has multiple exit strategies, whether there are signs of conservative underwriting, and double-check whether the proposed business plan makes sense given the asset class, submarket, and current economic cycle.Research market trends in job and population growth.

The economic downturn could make the market lose value, for multifamily over 5+ units the cap rates may increase, rental subsidy programs may lock tenants in at lower rates or a landlord waiting on the programs to make the payments on a tenants behalf, maintenance falls behind, a major fire destroys part of the building.

Couldn't tell you what the value for it was during the run up as the owner got it for 74k in 1999 and then the bank took the property and sold it for 61k in 2009 and then that owner sold it for 50k at the bottom of the market in 2012.We'd need another global economic collapse to erase 90% of the value of a property, and even that is an outlier.

I would become very familiar with them......they keep you updated on economic growth and real estate development......

Right now, in the current lending and economic environment, being a little more conservative with your eyes on the long term big picture may actually get you further.As you have likely seen already HELOC's on investment properties are very sparse, and likely will max out around 70% to 75% of combined loan to value.

One of the most often-overlooked hidden costs that investors miss is ... opportunity cost - it's what my economic professor once told me ...