I paid the electric bill that covered the water being pumped, I paid the electric bill for the water softener that hardly put a dent in the iron and blood-stink water.

It sure wouldn't work here.Could she soften this to "please drive by and have a look and give me a call if you're still interested?"

But there is also market risk with the potential that the market softens mid construction and you cannot sell the house for what you are in it.  

I saw this on other commercial developments where the developer projected a certain return when the project was leased up.When the project was nearing completion the market had softened a little which hurt the returns in a big way.It sounds like sellers and developers are cashing in on the herd mentality and will be walking away with the most money on this.I haven't been there like others have but I have had talks with others about it.I would say do not throw more than maybe 10 to 15% of your total worth if that into it.This way if something crazy happens you are okay.If you throw most of your money into it you are playing the lotto.Some will hit it big and others will take a big loss when it falls.Odds are with the lottery you will be left in the dust.If I was a seller in that area I too would be cashing out selling the land or building and then take the cash and 1031 into properties that are not over inflated in different markets.The 22 million is an asking price and not a selling price for the apartment building.The only way I would take on such a price or situation is with a non-recourse loan with no carve outs.This way I cash flow like a beast and when the market hits the toilet give it back to the lender and walk away.Under any other scenario you can land big apartment buildings with just as much upside at much lower debt service to decrease risk and market fluctuations.

Here is an interesting take for those who are focued on rental properties...http://sfist.com/2015/10/26/morgan_stanley_rents_w...There may be some softening and a plateau in rents for a bit...but pressure is going to keep it going...

Of course if you aren't forced to negotiate with a bank and the market softens, you'll have cash to make some good purchases.  

As I noted in another post, it appears rents are softening/stabilizing.

@Joseph KoteyWe had Amazon build a big distribution center within 30 minutes from us but we didn't notice a difference even in the city they chose.I was under the impression that NYC as a whole has been softening up.

Another view point: if market softened and you needed to reduce your rents by 25% (or your expenses could increase by 25% before you would be in the negative).

Keep in touch over time, some sellers soften when they don't eventually get their price.