While this does not have a direct impact on the psychology of a buyer, it removes a purchaser from the market, or a price range, which will lower demand and (economic magic) will lower housing prices. 

Combine interest rate hikes, stock market losses (possible bear market on the way), possible recession on the horizon, and many other economic factors and you really get to a point that makes you want to pause to see what will happen next.

They become part of a family.IF hard times fall, I help them out because I know that once you get past my tenant screening process.... you are a good and responsible person and the only way you can fall may be some emotional or economical situation which is beyond your control for now.For instance, there were a number of tenants that JUST graduated from a close by Art and Architectural school, had been working for a few years, but suddenly lost their jobs during the financial crisis.I didn't threaten to evict them or anything like that.

It takes money coming in to survive especially in a crisis besides your percentages are way too low .

I understand that she only sees one side of the issue and won't bother to educate herself on failed economic theory.

"Cookie cutter" homes are around because they are more economical to build. 

Condos can be more sensitive to changes in economic conditions than other asset types. 

You are correct that flipping has less long term risk and macro economic uncertainty attached to it.

We have been buying single-family rentals out of state this year (3 total) because our region's rentals don't make a lot of economic sense in my mind until the market drops. 

.$40 for the background check (I'm assuming that's the only "application fee" involved) sounds a little high but it can be a valid way to try to weed out less economically able tenant applicants.