For Middletown Ct that is quite a market value increase year over year.

Their policy changes including price increases, charging for every little thing as an "add-on", complicated GUI and the lack of fixes of known problems (posted by their "community" on a Facebook Group), and super slow ACH deposits (which take 10+ days!)

maybe - i think it's also probably just a reflection of the increase in home prices. 

Sure, you can make your unit extra special through design or amenities but when most of your competition is similar in size/shape, those extra items can only warrant so much of an increase in ADR. 

Once you've determined your objectives, look for markets preferably close to yours with active job growth, population growth and an economy without too much fluctuation.

Solid business and population growth to support long term appreciation. 

I expect the cash flow to be $0, and I will have to set aside some of the reserves out-of-pocket for the first year or two until the rents increase. 

In the reverse, if you increase revenues 3% and expenses 2% you're naturally going to inflate over time.

The appealing aspect here is the ongoing population growth and other economic factors.

I know one thoughts are “I can sell it for more” but that increases the risk as well because if I had a $250k loan on a $225k property and values continued to decline and the mortgage is in someone else’s name - I would be like “ok let me hand the deed back and walk away and go ahead and sue me…