I plan on attending 12/20 and observing, have not done any research of the items up for bid. 

I then went a step further to send him the pro forma I put together that clearly states some of observations I've made that I don't think he is considering and included a personal message inside the pro forma, asking that he could pass it on for the seller to see... within a few minutes he responded with a short "No - Our Counter Stands."

There are several statistical tests that can be run on the data to determine if there is a statistically significant trend, but from just a cold observation of a chart, this process is stable.

You are spot on with your observation that when supply is low, you will have an advantage.

One advantage I have observed with a 2 bedroom however is that although you lose a bit on rent it tends to attract smaller families and therefore a bit less wear and tear on the unit.

I would attend local real estate investment meetings observe and listen.

It sort of depends on your market tenant but I would offer this observation.

My observation is that the greater your floor area to wall area ratio is the less expensive the apartment is to maintain and renovate. 

It's been my observation over the past 40 years that SFR's almost never cap out in the NW, anyway.

Please keep in mind that this information is based on my personal experiences, knowledge, and observations.