I am from Long Island NY and it is priced out of my sub-65K investing appetite.

Cap rates on the commercial side have suppressed over the last couple years, but this doesn't just mean lower return, it also means lower risk. 

Yes, the area (in general) is great for cashflow, but depending on your appetite for class of area (A, B, C etc) will determine how much cashflow you actually get.A few quick pitfalls are:1.

Or they could just determine they no longer have an appetite for that loan or asset type anymore and just call it due and payable.If you do find a fixed rate, it will probably be high.

I've been all over the state and at the end of the day with the market shifting the way it is I would put my capital in a high cashflow low appreciation area like Fall River, New Bedford or even Springfield if you have the appetite for a great deal.I've been cashflowing in Fall River for the past 5 years and even though we have appreciated some in this market I am not concerned with the currently market shift because the buildings on MLS still cashflow and return cap rates at a steady 10%.In the end it's all about where you are willing to live and what you do for a living that will ultimately decide your market, but if your interested in the southcoast we can jump on a call and I can answer any question you may have.Cheers to your success!

It was suppressing the current condo rental market a bit based on our experience.

that takes a special appetite.

Even assuming lags between interest rate and cap rate changes, analysis found no statistically significant relationship between the two variables.These findings confirm that cap rates are influenced by a wider network of variables beyond interest rates, including real estate fundamentals, capital flows and investor risk appetite."

Anything under 1 million in commercial there is not much appetite for lending.

He's not a RE investor, but he has about $1M in his Roth.He's getting a bit nervous about having so much in equities, but doesn't have an appetite for becoming a landlord.