I've noticed that suppresses applicant flow as well.

Current goal is next property to close in the next 11 months, but I want to see some great equity in it in case their is some rent suppression if the real estate bubble in China, or the Italian Banks POP.

Sounds good on paper but always noise issues, shared utilities, yards, garages everything becomes a bone of contention.For conversions, there are codes issues with the separation of living quarters and fire suppression.

It is almost as if the US prices are artificially suppressed as both markets appear to have decoupled since 2006.

Does have fire suppression system for restaurant space. 

In choice #2 the syndicator might be tempted to suppress the adverse findings in DD, close the deal, bank their fee and hope that the market bails them out.  

The fact that it's new should definitely be passed through to the rents but things like fire suppression that we are now adding probably won't have any bearing on the new rents since tenants (at least the residential ones) wouldn't care about that.

It’s not like in Cal where you see drastic movements in prices and it’s not like in Detroit where prices are so suppressed that the hopes of being a top city seems like a dream.

This fact in its self suppresses the  appreciation for all 3 & 4plex properties, an appraiser will only comp 4plexs to 4plexs. 

The higher interest rates along high property tax rate will have some impact on suppressing continued price increases just due to lack of affordability of the monthly PITI payment.The question is really are you buying for cash flow or appreciation?