I agree with your sentiment, however just for clarification, if someone has received notice of foreclosure, that immediately becomes public record and trashes their credit.

Here’s why:They’re Market-Dependent: Cap rates reflect current market sentiment, which can shift rapidly due to interest rates, economic conditions, or investor demand.

📉 It’s wild how sentiment shifts faster with sellers and agents than buyers sometimes.

I think Most LL agree with your sentiment and as a LL I definitely agree but I will attempt to answer you question. 

I’ll add to that by saying that consumer sentiment is in the toilet.

Mortgage rates are driven by bond yields, inflation, economic data, and investor sentiment, not just the Fed.

.: I generally agree with your sentiment about leverage, but your example is really misleading.

Still, my final sentiment is to invest all your profits in properties that you can own in the long term, thereby reducing your overhead of rent payments, which can be challenging to sustain over time, and engaging in arbitrage. 

The house is 100 years old and it looks like holey hell, to the point where the city starts to get involved and we (investors) get slammed in the news for running down neighborhoods generating a anti-landlord sentiment we really don't need.

I share the sentiment - when I started seeing Gatlinburg show up on the 'best places to invest' chart in 2022-2023, I knew it was going to lead to an oversaturation.