Remember this is all just an outcome of demand and supply and not some exogenous event where banks are going belly-up etc which was what happened in 2008 starting with countrywide, Wachovia, WAMU etc.

I understand the idea that high cap rates in bad neighborhoods justify the inherent risks of those areas, but, that introduces other exogenous variables independent of of mere "dollars in, dollars out" calculations.

Acetone is the wrong chemical for adhesives, a better (and usually) cheaper option is MEK, or Methyl-Ethyl-Ketone.  

He likes saying “exogenous forces” a lot, but it is simply his OPINION that this is to blame.

👉Stock Market RisksCompared to real estate, the stock market is much more sensitive to exogenous factors and systematic risk, like interest rate changes by the Federal Reserve.

That said, valuations have been so astronomical for years, it may still be a tough sandbox to play in.To your questions:1) Home value for money, regulatory environment, local economy, low exogenous risk (i.e. natural disasters) and available, capable management nearby.2) Yes, but you are going to need management, good systems, and you are going to have to buy things that cashflow with some cushion.

The CRE CarnageThis exogenous and unexpected shock to the economy has proven to be a devastating blow to some and a gut check to others.

So if that is what is compressing the 10yr yield, and the yield spread, doesn't that also impact the US economy (exogenous shocks?)

Rough hypothesis, there is an exogenous variable tying these together.

Although investing in a rental/cash flow property is the way to go especially in these markets, it is probably not great idea paying the exogenous fees to withdrew money from your 401k before retirement.