I can think of a scenario where this type of situation would apply here in San Diego. Suppose for a moment you gobbled up 3-4 cash flowing rental properties in a place like Mira Mesa and rented them out to young Qualcomm engineers or some people that were in related fields. Suppose then that mobile slows down and Qualcomm decides to layoff 5K people. 2 or 3 of your tenants get laid off and decide to leave your properties. Now you went from you nice 5% cap and the $500/month to a negative $2000/month situation. How long can you handle that situation and how long will it take you to find new tenants?
