Looking at it all from a purely "evil" Capitalist view point on REI, inflation is AWESOME-sauce buddy!!!!   

I just sold a place in SoCal in a market that looked at solar as a pure negative.

Now a high appraisal could help soften the blow of budget overruns but that's purely good fortune for the investor that ended up with the issue in the first place. 

@Isaiah Miller you can only assess and analyze what you currently know to be true, everything else is pure speculation.

I know that the purely safe play would be to buy in some out-of-state market, but like I said this is a property in which I have interest and I'm trying to gauge whether it's a reasonable risk to take.So what I want to ask here is: what kind of questions do people here ask themselves when considering deals that have elevated risk like this.

Hi Chad,Will it be more likely that the renter profile will match the above unit renters with nurses or with a long term renter.What I mean is will the existing renter and the new renter be a good match to live in the same general area.Getting calls all hours of the night saying upstairs is having endless parties, or downstairs is always blocking the drive means a PITB situation for your voicemail.Or you could just go on a pure best cash scenario, but you have to be realistic, if upstairs moves out...there goes a big chunk of the cash too.Good Luck!

Pure real estate gold!

If it is purely about money see if you can maybe pay in interest a bit more for the charges. - Other options: See if you can get another short-term loan from someone else where you pay interest.

After paying the loan and saving for CAPex and vacancy, there is $500 of pure cash flow.

Also, not everything goes up by the same price, and for me raising rents isn't purely a business decision.