When buying at very low rates, unless you have a long term fixed rate, you should be looking at your deal at about 10% IMO as rates will fluctuate over time, seems 10% is an average expected in many areas. :)

But and after repair value based on comps as opposed to an off the top of the head assessment, should not fluctuate that much, especially if you figure conservatively

Since you want to finance this, you might want to look at how your debt service is going to come out of your NOI, leaving you with little (10% vacancy) to negative (18.75% vacancy) cash flow.Gross / Scheduled Rent-Vacancy+Other Income=Effective Gross Income-Expenses=Net Operating Income-Debt Service=CashflowI also wouldn't focus on individual month's numbers because they're going to fluctuate a bit and not looking at a rolling average can be misleading.

One thing you'll never have to worry about in the Pittsburgh market is fluctuating property values!

Kansas City is a great market - in fact all the midwest is great as it doesn't fluctuate as much as the coasts.  

In my area home values fluctuate from 100k to million dollar homes.

I’d heard Riverside was growing but that the housing market there can fluctuate dangerously.

In my opinion, it fluctuates with your risk propensity.

Discount is nice but can fluctuate wildly based on the loan rate, terms and more.To answer your question you can definitely invest in discounted notes to hedge your losses in a downturn.

In this case, short term market fluctuations don’t matter much.If they can’t get that sort of income, they’ll need to rely on general market appreciation - whether through inflation or real price increases - to drive a solid return on invested capital.