I imagine if these people really went through this process the vast majority are likely underwater right now. 

Declining locations work for the short term but over time you can end up underwater and have insufficient rent to cover your operating costs.

I definitely know that, within Benicia (especially at the condos), there were quite a few that were underwater in 2008.

Was he under water and unable to rent out?  

When I bought the property it was cash-flow positive, but the crash of 2008 hit and I was underwater on my loan and rent dropped so much I was negative cash-flow.

I don't get into an investment property planning on a quick appreciation hit and then selling before I am underwater.

Simply costing you a paint job and cleaning from smoking in a unit and you are underwater because you have a $650 SD to hold against it.While getting rent from government agencies is the best strategy is high risk areas, it also comes with risk. 

When people are underwater on their homes, property condition and value declines, the tax base shrinks, the area starts circling the drain into poverty and the community suffers.

Students still came to school and paid rent so no one really went underwater.  

Targeting the right audience is what is giving me a60%+ conversion rate, and huge profit margins/deal.The point I am trying to make in layman's terms is simply this.You are debating that if your mission is to catch fish, it is better to swim after them with a bat and beat them to death, than it is to swim after them and beat them with a pool noodle, or an inflatable rod that (is much harder to swing under water).That is my point.