There are also various indicators that have driven various markets, for example Melbourne boomed due to immigration, similar to Sydney.What you have stated is correct in part but this alone is not what killed the boom cycle today in particular Sydney and Melbourne markets, the largest in Australia.I am 100% correct it is APRA that put the final nail in the coffin. 

This is a safe approach but it will be a long outlook to produce significant wealth using this approach.Small multiplex in San Diego have better cash flow outlook than SFR.As indicated the return on equity has to be achieved via appreciation. 

I know San Diego RE fairly well and Escondido duplex to quad quite well, but without knowing where in San Diego and a ton of other details about this property I cannot indicate if it is a good deal. 

@John Woodrich I ended up calling they inspections department and they indicated R-10 rigid insulation cut to size and fit between the studs is acceptable or R-13 faced or non-faced will work!

During the appraisal process for the mortgage, it was identified that the home was actually 218 sq ft smaller than County Tax records indicated.

This was an indication that the main breaker was failing and needed to be replaced.

Bills 100% recession indicator.

Therefore, cash flow analysis indicates that I should flip.Flip or hold? 

The lack of any response may indicate that this individual is a true private lender as opposed to a hard money lender.

If you graph prices annually they usually dip in the winter so 4Q posting up indicates a strong market.