I also have a fairly high risk tolerance, but when I was actually awarded my first deal, then the fear kicked in along the lines of "what did I miss?"

Your risk tolerance is much greater than mine.Originally posted by @John Teachout:We don't insure properties that we acquire until we get a rental contract on them.

But everyone's tolerance for leverage is different.

I read somewhere that was a good way to do it personally if you can tolerate the moves every year or two, as the capital gains gets deferred each time you upgrade.

Interesting, I see your point more clearly now, @Nazz Wang You make some great points and ultimately it will come down to risk tolerance.

This is the difference between what municipalities will discern as tolerable businesses and those with "publc safety issues"

I LOVE bad tenants, until I own the place then I do not tolerate them and they ALWAYS leave because they cannot survive in a building that is run correctly.

Not knowing their experience, risk tolerance and how hands on they want to be - all factors that are included in cashflow purchases as you are aware.

My theory is that not too many people want to buy them - the people living in those areas don't have a high enough income, credit score etc to purchase at 7% interest rates and it's investors who have a high risk tolerance who will buy them (like me and I don't have a high risk tolerance, just made a bad decision). 

All investing is risky, and we each mitigate those risks in line with our individual risk tolerance.