It is purely people hoping/expecting that someone in the future will pay more than the current owner did.Pardon the hyperbole but:IBMCoca ColaMGMChaseDOW ChemicalWoolworthALCOAFord Being a big name did not make investing in NAZI Germany a smart or good move.Finally, can you tell me what Bitcoin is worth? 

Congrats - would you ever buy in this market for pure investment purposes or do you think its mostly just a good market for a owner-use vacation home?

You did not specify the age of the property so it is purely speculation at this point. 

As a local investor, I always recommend starting where you live—it gives you a better grasp of the market and makes management easier.From a purely numbers perspective, investing in a high-cost coastal market like San Diego has allowed me to grow my wealth far more quickly than I ever could in the Midwest.

My allocation I mentioned above is purely what I would do based on my current financial situation.  

We've got many clients that buy them as pure rentals also. - The FHA 203(k) loan is a great way to buy a MFR as it allows repairs to be included in the purchase mortgage.

I'm originally from Western PA as well (Slippery Rock) and now reside in Atlanta.Here is how I am looking at it along with the assumptions I am making:1) I think the growth prospects are better in the Atlanta market than Pittsburgh from a pure demographics standpoint.2) I estimate your return on equity at 7.2% currently3) Over the long haul appreciation is going to take you further when it comes to net worth than cashflow will4) Doubling of the roofs is doubling the expensesThings to consider:1) What is the year built of your Atlanta property vs. what you could replace it with in PGH?

I don't know about a pure office building. 

Investors base their purchases on potential, but appraisers base their numbers purely on formulas and comps.

So in that time I should have around $25-30k in pure profit saved up in rents.Once I have finished the rehab and stabilized the property I plan to either sell or refinance within the year.