And sometimes banks are the ones who mislead such a home buyer, by issuing pre-approvals and approvals to sign a contract, but then back out when more sophisticated underwriters spot an issue (in buyer's income, credit score, DTI, property value and etc.) that loan officers who gave preliminary approvals didn't want to see.

I used to own three rentals in Seattle but after 2012 when the prices got too high I realized that sophisticated buy-and-hold investors invest where the numbers make sense with cash flow, not appreciation (gambling).

Other areas of the city it should be the cheapest unit but this is an area that has a lot of sophisticated buyers.

Typically, banks, funds, and traders will have an expectation or estimate on key economic data releases, often created through sophisticated, complex financial models.

These successful RE investors may know sophisticated localized value adds.  

I will add a bit more below;The casino project has portrayed a great deal of "hype" with many of Springfield's investors/residents/community.

While originally this tended to just be simple geographic area like a city, zipcode or subdivision, you can now get quite a bit more sophisticated.

We don’t have time for off market hunt, nor do I pretend to be the kind of sophisticated investor like Don or Jay here, but then they are in a different league.

This can be a sophisticated value add opportunity.  

It could be something simple like making sure you have a legally compliant lease, or how to properly serve a 3-day notice for late rent, or could be more sophisticated of how to communicate with residents when their 4-year-old shoved their toy in the garbage disposal and they don't want to pay for it.