The good news is you can blend vertices if it factors into your overall strategy. 

It is also a blend of SF and Honolulu. 

It’s got to be one or a blend of several of the items on the list.Thoughts? 

It sounds like you are buying for both so I think you have to blend the offer a bit.  

However, if you are looking to blend cash flow and appreciation, then the Dundalk area (and especially the Elton area) may not be the best place to tied up your capital.  

So a starting low cap of 4 and healthy increases gives them a blended cap rate of 5.5 to 6% over time.As a seller or a developer I would also think to myself to sell to these buyers for a premium.

I was wondering what people's thoughts are about how this applies to active real estate investors that presumably can achieve higher yields than the blended yields from stocks and bonds that are used to compile the tables in the study.  

Assuming Will operates out of an S-Corp (he's a smart guy so I'm positive he's doing this) and nets $350k, by deducting his lease payment he avoids 15.3% self-employment tax, a 1.5% CA franchise tax on net income, a blended CA income tax rate of 7.98% and a blended federal rate of 26.1% for a total of 50.88%.

They are different strategies you are blending some.

I have recognized that, for me personally, the RE industry provides a unique blend of technical science, creativity, and ingenuity.Next fall, I'll be starting right back up with school again as I pursue a master's degree in Real Estate Development.