@Leandro AbreuDid have any other rationalization other than the flood of Chinese money into the market?

Reason: Taxes get pro-rated, so by paying the taxes, the sellers just re-set the pro-ration clock and saved money.

He rationalizes that his current home is too big and needs to downsize anyway.  

You can consider forced appreciation but be very conservative. 1-4 units is NOT purely from an income approach.You don't pay points on an installment deal an equity funded note.I suggest you have a debt coverage ration of at least 1.5%, more is better (PITI, maintenance,  insurance and taxes being less than 1.5% of the income) Did I mention an attorney and a broker?

Don't rationalize a bad deal into a good one by using arbitrary % and/or depending on future events I have no control over.  

Before anyone is ready for that, they must do the dirty work - could it be that the calculator is robbing people of the chance to rationalize the process through the numbers?  

To a California guy, that is a wild concept, I know - but it is fact.So, in my opinion, a  4plex makes more sense (more people paying rents) - and in Bakersfield, you'll have plenty of comps.To a lender, it won't matter 1-4 family is all the same.So think of performance ration - in a duplex, you are living in one, you tenant moves out - you are paying the whole boat.  

To me it looks like buyers are not making rational decisions. 

I just started accumulating properties in Western PA because of cash flow vs purchase ration is much better.

It just upsets me how there would be people like this out there who try to wipe out "competitors" instead of calling me and asking me to partner up since I DID have a couple leads and would be a rational thing to do but i dont care cause im very passionate in the rewards that Real Estate can bring me or in my future but i know theres another way.