@Nate Anglin You're right about the prices spiking up due to the demand.

For example, after Hurricane Ike during my time in Houston roofing costs spiked bc materials were harder to get a hold of etc.The bottom line is if you put something together for yourself get some trustworthy contractors, talk to them, get some bids, and from there you'll have a true understanding of what your costs are.

The spike in prices is largely blamed on foreign (Chinese, Korean) cash buyers who pick up multiple homes/condos in the city and then leave them vacant.Why don't I buy it?

The nightly rental rates are only this and last year starting to react to spiking demand, so there’s still room for a big jump in appreciation I think.

great to see you have an investor(envestor) mindset and take initiative to leap frog your new frontier into the creative world of real estate, although i no longer hold a current realtor's license i think that is wonderful that you can use that platform to spike your niche, i work with some local realtors here i'm currently working acquiring a  7 - 8 4-plex deal, and i think it is money wisely spent to locate wonderful realtors they will make you team that much more valuable, keep posting my friend but most of all keep sharing happy trails on your new journey

That will probably eliminate another 20 or so....wishy washy sellers who think their property is worth more than it actually is or dig their heels in regarding what you have to buy it for to get a deal.Then schedule to meet only with motivated Sellers. 

The market simply cannot keep up with demand, especially short spikes.  

For example, a landlord may have a home that vacates in late Feb just in time for the increased spring selling activity (at least where I live there is a spike).

My local town is growing like crazy and there is a massive market boom right on its heels.

Assuming most of this land is actually able to be developed (no conservation/wetlands) a sewer could spike the cost per sqft.