This historical-registered $2.2 Million Hancock Park home is a reimagined contemporary design of an elegant early 20th Century Georgian Colonial, originally built in 1919.

In a Historic area I get it. 

cap rates at historic lowes, so i think your asking....can they go lower?

I own a number of properties in a historic neighborhood.

When the next recession comes (they historically happen every 5-10 years and the last one was '08),  I'm not confident that the population growth will outweigh other negative macroeconomic factors...I strongly doubt we will see anything like the '07 crash, particularly because of the affordable housing shortage, labor shortage, lending reforms, and all the positive migration, but that doesn't mean we won't see a pullback. 

Historically what variables determine what the minimum accepted bid will be?

I generally use zillow to see the 10+ year rent historical so I can have a reference for the worst case scenario.

So as rents historically increase but your mortgage stays the same these deals get more and more profitable.

I generally use zillow to see the 10+ year rent historical so I can have a reference for the worst case scenario.

Even if they could, lifestyles, at least for now, do not make it a competitive option, at least at historical price levels.