Cost plus - markup is typically between 10% and 20%, as the builder doesn't have the risk of price volatility with materials and labor, or the risk of mistakes in estimating. 

We have also been putting financing contingencies in our LOI's, because if the economy takes a sharp turn and lending dries up or rates become volatile, we need to be protected.

Bonds are more stable, consistent, you know what you're going to get vs stocks which are a little more volatile, but offer a higher return.

The new lender we initially signed up with for the refinance notified us that they would not be able to provide the new loan at the agreed upon terms due to current market volatility.

Vacation home purchases are very volatile as they’re one of the first assets to be sold in a downturn.2) The volatility of single family and multifamily are nearly identical.

@Ben Leybovich“I’m uncertain of the market over the next few years but over 10+ years I’m very optimistic of real estate.”One can be optimistic of real estate in the long run and pessimistic in the short run.Also, whether you’re required to hold for a long period or have the optionality to hold for a long period, your risk and market volatility is reduced as outcomes resort to the mean as time continues.

It’s difficult to exactly quantify and everyone will have a different opinion of what’s “safe” but we evaluate historical cap rates and the volatility of those cap rates as well as run a sensitivity analysis with changing rent growth and cap rates.

too much volatility in markets.

That makes them inherently more volatile and they behave more like a motel than a mobile home park.  

And when you grow too fast (especially in a volatile market like the one we're in) mistakes can get made.