If an asset is throwing off a certain yield that is not commiserate with it's risk, then investors will then begin paying more for that asset, thus decreasing it's yield....or start paying less for the asset which would increase it's yield, until it was at the proper risk/return rate to produce the yield that is truly reflective of it's risk.The problem is novice real estate investors get the risk/reward correlation backwards.

However, I’m increasingly excited about starting a unique stays/glamping business.

He demands the rent increase to $3,200 but you refuse to pay it.

Most service or trades people us included increase the rates for customers we don’t want.  

Will you have cash flow on day one or do you need to increase rents or find better tenants? 

For example, in C class neighborhoods, you might see higher tenant turnover and more wear and tear, which can increase costs over time.It’s also worth factoring in reserves for capital expenditures (CapEx), even if major items like roofs and HVAC systems are new.

I like the West Mobile area, its class A area, you can definitely find deals there, 3 bedroom with 2 bathroom for around 220k or so, you may have to wait a couple of years for positive cash flow but properties there increasing in values better than others.

As home prices or interest rates increase, fewer people can afford to purchase homes, forcing them to rent.

How do you evaluate the increase (or decrease) in price of the land in question down the road?

The equity increased a ton especially w the limited supply