We plan to fix it up, raise rents, decreases expenses, refi and buy more!

Hopefully these are accounted for or tested in the financials prior to the offer but it is rare for projected financials to show profitability decreasing over time as it is not what the investor wants to see.  

By doing this you'd probably improve your cash flow, decrease your taxes and benefit even more from appreciation.  

There is significant risk that the US population will decrease.

@Ava Yuergens I don't think the returns are decreasing because of over saturation, I think it's because the cabin prices are going up rapidly.

And even if there is a 5% decrease (or worse), that still wouldn't phase me, because price appreciation isn't a big factor in my strategy -- cash flow is.

Then it's a matter of projecting how much you can decrease expenses and increase revenue.

Also, some lenders offer construction funds wrapped into the loan, which greatly helps your overall returns by decreasing your out of pocket capital.

I wrote an article about this a while back you might find helpful: https://www.biggerpockets.com/...It references an old study from the 90s, but I think it's still more or less true and a good starting point for this discussion: In 2003, the National Association of Realtors came out with a study on the characteristics that increase and decrease the price of new housing (assuming all other characteristics, i.e. square footage, remain the same).

Missoula decreased to 4 people moving here for every one person that left, but that's still crazy high.