Prices are high, expenses are high, and rents are modest so the strategies that can get you enough to live on, to give some examples, might be student housing, higher risk cities with low house prices and poor economic fundamentals, or starting with buying a multi-million dollar portfolio requiring hundreds of thousands or a million+ of down payment. 

If the most you can get is $533 this is not an economically stable market, which means you will have trouble both driving rents higher and driving valuation higher.2. $533 is not enough to cover OpEx, CapEx, Debt Service, and Profit.

Solid economic and demographic trends4.

My only concern is the rising rate environment and the impending economic slowdown many economists are expecting (granted they have been saying this for the past 12-18 months), and what impact this could have on getting overly levered.

So even with a big economic downturn, I have a hard time imaging that prices will fall, at least for properties under the median.So if you got a few million bucks in RE out in FL or NJ, do you hang on it, or do you start to cash out now and go buy something in the Midwest or TX where prices are flat... and way less likely to tank hard...?

If so, what information would you give them to make them see things for the business reality of the situation, which is that they're realizing an economic loss every month they continue owning the house?

Those are valid and great, but there is a lack of social education on the economic benefits of real estate outside of BP. 

I have my thoughts as to why Richmond has strong fundamentals and economics and is poised for steady rent growth.

Sounds like you found a great deal, and I agree with you that the appreciation should continue with building of the new federal courthouse and also Harrisburg University is supposed to be building a $100M building downtown, which I think that economic force will trickle into the Midtown area as well.Let me know if you have any questions, I'd be happy to help!

# of doors and $$$I think Birmingham, AL is a great location but every market is hyperlocal in regards to economics.