It's also possible the foreclosures won't ramp up to previous levels keeping supply artificially low.

Equity produces artificially high cash flow numbers that must be at least partially deducted.

@Maria MarreroYou're missing a lot in the analysis, artificially making the numbers look good.You used a heloc, those payments should be in consideration.You include CapEx, taxes, insurance, but what about repair reserves, utilities, property mgmt?

Some listings will advertise "PRICED AT 10.5% CAP RATE" but I honestly never consider those to be valid as the current owners factor very little maintenance, no cap ex, and almost always no property management into their equation, artificially inflating their numbers.

If the tenant is paying rent then creating an artificial turnover is usually not in your best interest.

How long will this trend continue and what happens when we see this artificial uptick reverse trend?

I would make sure that the exit cap rate is not lower than the purchasing cap rate as this can artificially boost the projected returns.  

If you look at it 20 years in the future, when you'll still have an interest rate locked in at a freakishly (and artificially) low rate, you'll be fist-pumping excited! 

Regulatory burdens are likely to go up, and I think asset prices will remain artificially high due to loss aversion.

The reduction in borrowers obligations also artificially increased economic productivity.