There is much discussion about decreasing BAH rates to 95% or even 90% of housing costs and I think the military is currently at 98% of housing costs.  

If the area begins to transition, the Cap rate will decrease, forcing the value of your property even more. 4) What's the downside?

At that point you would have three items 1) your adjusted basis 2) your depreciation recapture (25% tax IIRC) 3) your gain (taxed at 15-20% IIRC).Your basis throughout the years will change as you decrease it by taking depreciation, and increase it when you perform improvements which will then be depreciated.

Your cash flow is perfect the way it is, and having any debt on it decreases it much too much.

Decreased Housing Supply Continues to Lessen Affordability: Zillow by Jacob Passy MAR 27, 2015 4:22pm ET Housing affordability has shrunk as the issuing of new housing permits has failed to keep pace with population growth in cities across the country, according to research from Zillow.The cities that have maintained affordability the best are those that have either experienced low rates of population growth or have kept in step with that growth by building more housing units, according to the report published March 27 by Zillowmore....http://www.nationalmortgagenews.com/news/originati...

Simply this, IN MY OPINION,  you inflate what the properties value is or even can be, you inflate what the rental rates are, you decrease intentionally what the costs are.  

I have sent more direct mail (used the same strategy), basically the same letter, but the calls have decreased in 3 months to the point that only about 2-3 people called on my last campaign (previous calls would be 20-30 after campaign). 

I also know various areas of the city very well. which I feel decreases my risk as I have a better grip on where neighborhoods are headed which for buy and hold is important. 

Rents are going up every year so your net housing expense decreases and your net worth goes up with equity and appreciation.Your location is familiar with me.

High unemployment could potentially be a factor driving NOI's of properties down, therefore decreasing your purchase price.