In the former scenario, the Fed will be forced to cut rates and mortgage rates will likely drop substantially.

It has to be substantial enough to keep the contractor working. 20% or so.Make sure they are licensed too and that they have a good reputation in town.

Of course, with SFR you run the risk of a vacancy eating into the cash flow substantially.

If so you should be able to avoid a partnership return and file on Schedule E of your 1040, assuming the rental doesn't provide substantial services, as WA is a community property state."

and there are lots of other costs that you should not overlook - closing costs on the purchase, holding and rehab, and then big fees on the refi too.and if you're looking for cash flow over equity, then you just need to look for deals where you can significantly increase the RENT via the rehab.but i'm actually doing the reverse right now - i'll take low or break even cash flow if i can create substantial equity (>$50K.) 

And then if they shut down, raise prices substantially, customer service goes down....

It's a substantial amount.

So substantially changing the nature of the land into a different character would be creating inventory. 

You may not get his as hard because it would be an off market transaction, but you could still reasonably expect the annual taxes to increase substantially post close, making suitable cash flow even harder to achieve.I have never operated STRs in Houston, so I can't tell you how reasonable that strategy is there.

These decks are concrete but are supported by wood columns and i always worry of someone hitting a column and creating substantial damage.