I've seen a lot of unit owners, that are just tired of the volatility of ownership, so when they have to refinance they think what's the point, I'll just rent and not have to deal with this.

Larger, growing markets with a more significant pool of ready buyers will experience less volatile cap rate swings in declining markets, and as David T said, projects with steep value-add opportunities can overcome the losses due to cap rate expansion in many cases.   

This fund will also offer complete transparency as well.The lower rates are really market driven and we're lowering them now to enhance our current business model as we grow, which will enable us to increase buying power and improve overall trade efficiency.Para #1 of your post: Doesn't this introduce volatility in terms of cash operations for you.

Some history and perspective from a 3rd generation Montanan, and someone who has been investing here for 18 years:There are a few markets (Bozeman, the Flathead Valley, and Missoula) that are volatile.

I would suggest right outside Houston: Spring, Katy, Humble, Pasadena, Friendswood, Cypress I am buying my first multi in Old town Katy, because it is way less volatile than Houston but close enough for folks to drive out there.I would consider Baytown right now, there is $500M going into steelworks soon and all the labor force is going to need somewhere to live.

How volatile do you think your income is?

Gold can have much larger price swings and doesn't have the potential of creating a passive income stream.Real estate values can fluctuate as we all have learned, but I believe if you looked at gold over a significant period of time you would see that it more volatile.

So have a handful of volatile currencies that routinely go up and down 10% on a literal daily basis.

The caveat is that this sort of gamble makes more sense in higher volatility markets.

I am very new to international investing but am motivated nonetheless to jump into it for all of the many benefits that you laid out in your commentary and as a hedge against the U.S. market which has been showing quite a bit more volatility than usual.