The prices on condos and townhouses have softened quite a bit, and I think that will continue for a while.There is a lot more potential income in a single family vacation rental than a condo or townhouse. 

Construction costs are still high and rents are softening.  

Those command a higher price and, in my opinion, will stay rented even when a market softens.     

Or just waiting until things soften..?

I think the rental market in Sacramento is really strong right now, and having a tenant in there while you fix the parking situation may help soften the initial cash flow burden.As far as comps go, I would simply make sure it is an apples to apples comparison as far as the property type goes.

We will be in better standing once it “softens” compared to last recession.

Here's some recent stats for the market: The median price softened to $305,000 (down 7% from summer).The median price is currently 8.9% above January 2016.Sales volume was stronger in January than it’s been in 4 years.

High end homes those homes well above the mean.. they softened in all markets.. but unless your just looking for a deal on your personal resi not necessarily anything one would buy as an investment.So if your buying in KC  ( and I like that market a lot for B C cash flow)  I don't see any wipe out in values.. the only wipe out will be Failed landlord syndrome  and that happens in ALL market conditions.. gets pronounced in a recession.. but I can pretty much guarantee there are plenty of deals to be had in the mid west at wholesale prices in the Rental stock areas... never has really changed much in my 20 years of funding this product for buy and hold folks..

That's because tons of people tired of living in a cardboard box for $2,000 a month and are quickly getting the hell out of dodge:http://www.mercurynews.com/2017/01/03/its-a-fact-the-bay-area-rental-market-has-softened/http://www.mercurynews.com/2016/10/24/bay-area-rents-are-falling-new-survey-shows/http://www.siliconbeat.com/2016/10/24/bay-area-rents-falling-falling-falling/?

Thank you @Leland Barrow  Do you think if I soften it somehow it would help?