The homes you listed are all in Avondale, which is the most depressed/decrepit neighborhood in Chattanooga.

Even though I think it's a bad idea from what I've seen it hasn't depressed values for 1-4 units or multi-family in those areas.  

And thats my point either we completely change the banking model (not just regulation) but product changes, rate changes, everything which will depress trillions in wealth.

It depressed REO prices significantly, which probably fed into the high discount rate.

Rents there are significantly depressed compared to Dover just beneath it.

With home values depressed, the guy who kept a cash position can purchase 3 homes that will cash flow $320 per month each. 1) cash buyer - 150k equity, $900 monthly cash flow, and no debt.2) high leverage -  no equity (underwater 160k), Losing $600 per month. 910k debt.3) slight leverage - 110k equity, $580 cash flow per month, 225k debt.4) cash position - has no equity (but not underwater),  $600 cash flow, 900k debt, and 10k cash.In this down scenario, the cash buyer is temporarily the best, but both the slight leverage and cash position scenarios are in great shape. 

Meanwhile tenant-friendly laws have further depressed rental housing.  

Ironically, cash producing vacation properties typically appreciate very poorly, as they are cheap to buy because the land/space is basically unlimited (ie Great Smokies TN), and people just keep building which depresses values and puts downward pressure on rent rates.

Do the math, the cap rate has to higher than interest rate to make it happen.And expected growth of the rent is much lower and expense is much higher, so consider the NOI decrease, and cash flow depressed, the cap rate will even higher, maybe cap rate 7~8% to just make the deal make sense.

Long depressed and far from gentrified, this is where the priced-out Seattle tenants are going for cheaper rents.