typically places with great historical appreciation have higher entry cost and lower cash flow.  

It may just take you some time to figure out what the right amount is, but if you just bought this property you probably already know the historical utility expenses.The downsides are obvious - if your water bill is higher than the rate you are charging, you as the owner are going to eat that charge.

Right now apartment cap rates are at basically historic lows, so although cap rates could be at a 8% in a market, it could be 10% in 5-years (or 5%...if I knew, I'd be a millionaire at 22).

The area is in the downtown of the town that I grew up in( so very familiar with the demographics and historical rents etc. ) and have noticed it trending up for the last decade or so due to nightlife, low crime and decent schools, major train station in town, and the coast line with beaches .The house  has two units which are currently yielding 1600 and 1500.

Rates today are historically low and I think I'd rather have a guaranteed rate than roll the dice in 15/20 years when we want to refinance and have no clue where rates will be.

Although our market is hot, vacancy rates are low (below 5%), interest rates on a presumed 30 year fixed mortgage are historically low (floating around 4.5%) and rents are increasing with the high priced housing market driven by a lack of inventory.Unfortunately, TierraSanta doesn't have a lot of MF's but the surrounding areas hold possibility if you're flexible on your target market.

Your principal is still at risk when it is invested, even if you have chosen an allocation with historically low volatility.

The Case Shiller is an actual chart based on current historical numbers (chart #2, based 10 years).Even more striking is Case Shiller 30 year, (chart #3).

Anne's Hill, Huffman Historic District, and Walnut Hills. 

How is the employment rate in your market, especially compared to itself historically?