"it will get worse"
I agree, with the late entrants being the hardest hit.
The psychology present is similar to that of the dot.com craze. I have friends in California who purchased a multifamily property months back, taking a $1,440.00 negative hit per month on a variable loan with the notion that the market will continue up as it has.
The spread between mortgage payments and rents is going to be huge as the interest rates kick up. Renters are bound by wages, the old saying about blood out of a stone is appropriate.
Wait till some of these renters don't pay a few months rent and get to stay there rent free via some landlord tenant judge.
RE is great, but many who have bought into the Carlton Sheets deals have no clue about dealing with tenants and zoning laws.