We operate a drywall contracting business in Grand Rapids, MI.  

It's rapid.

@Ben Leybovich   are you kidding me... in your business. what about all those deals you scout out and others would love but you pass on ...I have sold some apartments in my days.. and loved getting those 50 to 100k commission checks,,, NOt much harder than doing a SFR deal... inspections are usually in one day and at rapid pace.. title co on their game for the big title fee  and buyers actually have money and are generally professional..

Hotels are rapidly changing, & although multi-family is as well, not quite like hotels.  

I am not investing for rapid gains that I have instant access to.  

Is it true that these properties offer lower cash flow in the long term if the rents go up rapidly vs a market with higher initial cash flow but lower rates of rental increase?

But will high prices be mitigated by a rapid increase in supply.  

My father-in-law's health has rapidly declined so we don't feel like we can just move without getting them to go with us. 

To me the area seems to be appreciating pretty rapidly.

Maybe a good deal, so long as you have looked at other factors - it's not in a rapidly depreciating area, for example.Market value is really just a running average of numbers, constantly shifting.