Is this common, or are we overpaying due to lack of competition?

Never invest in any city on this list.Low operating costs: Every company faces competition.

I bought a State Farm policy on a STR and LTR, their prices were competitive and they were easy to work with considering the home is 100 years old.

I think someone mentioned earlier, it all depends on conditions and competition where you are.

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

If you're considering buying a foreclosure, it can be an excellent way to get a deal, but be aware of the risks like property condition and the competitive market.

Here are some of my thoughts: 1) they are work and have risk 2) in this hyper competitive RE market, there is not enough profit in the rehabs of most MLS listed properties.  

I think I have a short window of opportunity to buy as a lot of people are still waiting on the sidelines for lower rates, so less competition.

Quote from @Sanil Subhash Chandra Bose: Quote from @Jay Hinrichs: Very good.. reality is though very few will do this to much work.when I was full time buying courthouse steps I would occasionally go into the recorders office and see my competition doing all this busy work.

So even popular rent estimate tools seem a little inflated unless you're outpeforming the competition with what youre offering.