On the flip side, cashflow is a great long term "defensive" metric, because cashflow allows you to keep paying your bills.

For what its worth, I've seen an entire industry of folks put up fights with the SEC on arguing that something isn't a security--many of them have since spent a lot more time and 10x more on defense attorneys than if they'd just... acquiesced to regulatory jurisdiction.

@Tyler Foshe In LA's defense there are absolutely properties that you can get to cash flow.

And, if you get into court, you don't want your defense to be "but I read it on BiggerPockets!"

FWIW, I consider growing enrollment in local colleges, special partnerships that involve local government and businesses, population trends, and defensive industries similar to those in the financial markets. 

Yes, loss of rent is definitely a good defensive move just in case your property were to take a unforeseen hit and was not able to produce cash flow.

@Chris MartinI didn't mean to make you defensive - just curious as to why.

I just closed on my first house, and being honest it’s probably a bit much, but in my defense, I bought with the intent of living there and starting a family some day.

By no means am I saying this wouldn't work, just curious of the defense.

He’s simply looking for a first line of defense to weed out stuff that wouldn’t be close to profitable.