I would also say that markets like Manhattan are not super representative of most markets in the US - a lot of foreign investment I'd imagine in NYC, Miami etc - I'd guess a lot of these cash purchases are more about exchanging unstable or risky foreign assets/currencies for perceived stability/safety of US top metro residential real estateI think in a lot of other markets where this isn't relevant - I think most are cash offers being "king" as not having appraisal or other contingencies that might sabotage the sale after 30 days or so and make people re-list (sellers will take less to avoid this risk and downside)

I personally believe the positives of FHA financing far outweigh the perceived liability exposure many caution of and its one of the few circumstances where I wholeheartedly believe investors should prioritize FHA financing over purchasing properties in an LLC. 

In other words, your price determines the perceived value in the guests mind, no different than a luxury purse fetching $1000 while another brand only $75, even though they are both made out of leather. 

Cap rate is a reflection of the risk, or the perceived risk in the asset and/or the market.

This can be perceived as a "deal" due to price point.Alternatively, can the unit be delivered vacant?

That said, I think most people perceive these two cities to be pretty much on par with each other in terms of crime.Maybe I'm wrong...

So your age is just a perceived excuse.  

So as much as I hate for our investor clients to repeatedly lower the rent price, the market is always about price (perceived value) versus the competition.

Seasoned investors could care less what the interest rates - they are more worried about profit - while the laymen sit on the sidelines waiting for (a perceived) better opportunity. 

We just closed a deal with 110k in seller assistance which isn’t shown in the sales disclosure. 2% in perceived value or tax assessments can’t move the needle in any meaningful way or at least if they do your deal is WAY too skinny.