In addition, you're starting to see rental growth rates slipping and with so much new construction going on, construction costs have been skyrocketing across the country.Like @Brian Burke said, today you can still buy at way below replacement cost, even in hot markets, so unless you're plenty experienced on construction and/or have millions to spend, I would stay away. 

As the other posters say, this is usually done only with clients I have extreme experience and confidence in and also who have funds to put in.As a lender or JV partner, we can't properly vet an auction property before you buy so the risk skyrockets for us.

As a result, prices for multi-family properties in these comer neighborhoods are skyrocketing.

Prices are skyrocketing!

Vegas has some fundamental issues that make it not a market I've ever wanted to focus on, but even those aside, prices there have already skyrocketed too. 

These small costs up front could save you big money in the end.Your confidence will sky rocket after the first one, just have to find your way through it.  

I think you should be focusing on cash flow and holding long term instead of hoping land value skyrockets when you're ready to sell.

No one knew that Brooklyn would skyrocket between 1997 and now.

No I'm not expecting for something to skyrocket the day after I close.

Prices are skyrocketing.