[Ennis]

Most folks I know that purchase properties are not in it for cashflow. Breaking even is enough. The goal is to purchase the next one with a downpayment against existing equity. The deck of cards falls apart if the property market corrects significantly but how is that different than everything else happening in this economy.

[marto1]

For one it's an extremely capital intensive operation for most folks. In fact buying a property is usually many times their net worth. Which means now one is not allowed to make mistakes, because losing means not only going to zero, but going underwater many times over what the cashflow can cover.

This argument falls apart once a property is a fraction of someone's net worth, but it's rarely the case.