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.

There are some locations to stay away from but almost every single sub market of KC has value and increasing rents.

You will likely need to sit on the unit for a long time or reduce initial rent below the market for that unit to rent during the Winter. account for this by either offering a Winter special that will increase to market in the Spring or doing a short lease that ends in the Summer.

If JC is a must, that's fine you'll do well with appreciation and rent increasing depending on the market with in city.

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

I figured the minimum increase to list in auction from the year before would have been enough.

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.

You can refinance sooner than that but you'll need to paper trail all of the improvement costs that lead to the increase in value.

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

It's based on the purchase price and will not include any improvements, reno, or increase in value since the purchase.