Not necessarily in the worst neighborhoods, but places where average real estate prices are relatively low and the quality of life is still decent. 

I recently read in Malcolm Gladwell's book "The Tipping Point" (pg72) that "what separates a great salesman from an average one is the number & quality of the answers they have to the objections  commonly raised by potential clients" or sellers in our case.  

We have kept in mind that our rent should be priced just below market rent prices for longevity and quality of renters.  

I would encourage you to look for notes on higher quality/value properties.

The biggest question is about your quality of life.

Give Ben Leybovich's blog post here a read, but even more so, read Brian Burkes comments on the blog.Your CAPEx reserve is not an operating expense, it is a reserve and is deducted from NOI.Instead of looking for a specific CAP rate which will get you in trouble, you should be carrying out a discounted cash flow analysis over your {initial} hold period and determine the IRR or MIRR ... use these to anchor your underwriting, then look at things like Cash-on-Cash return to help determine the composition (some might say, quality) of the return.Frank Gallnelli's "What Every Real Estate Investor Needs to Know About Cash Flow" is a good primer to get you started.  

They haven't raised our property taxes but every once in a while they try & come see the quality of work.

Both developers are reputable ones, they are sticking to project schedules, and the quality of buildings are good.

I don't know if he's been sober the whole year he's been with us, but he's had the same job, pays his rent mostly on time, is spending quality time with his grandkids and generally seems to be healthier and happier than when he first moved in.They are all responsible adults for the most part.  

But what ppl don't realize is that it takes a boatload of energy to take cold water and turn it hot in a flash, the equivalent of 9 AC compressors running on a hot day.This is why it's critical to have proper, expensive installation, b/c you're really taxing the electricity of the house.I'm in Miami, and quality electricians are in short supply.