Is there a chance that rates and prices decrease in the next 1-4 years as our cash reserves increase, thus creating a better scenario for us first time investors?

I saw some of your previous posts, so I'm glad you're getting closer to your first.I think your rent sounds pretty cheap between you and your fiance now, but I also don't know the COL in your area.Maybe if you found something comparable in price or slightly less, then it could still math out, because you'll be benefiting from appreciation, loan amortization, and potentially a housing expense decrease over the long term even if slightly. 

Agreeing with everyone else - I always look to increase occupancy, not decrease. 

Huntsville is a very popular market (and there are short direct flights from DC too), but I would encourage you to take a look in Florence and Muscle Shoals, Alabama where we manage.If you are interested in the Shoals area, I can help you with insights regarding economic vibrancy, market dynamics, investment strategy, high-ranking public-school systems, etc... and a turn-key experience by helping you find an investment and managing it too.

A few years down the line, we might see cap rates decrease to around 5%, significantly enhancing potential returns.

Another option would be to hire some day laborers to help out.As I mentioned, the work doesn't require much technical skill (and there are probably lots of useful how-to articles and videos online), it just requires a lot of muscle and physical labor--it's a job where many hands make for lighter work.I'm in your area, so, after it's dried out, if you want me to come take a look and discuss the possible causes and solutions to prevent further flooding, dm me.

In the last few years, income inequality has actually decreased.

Two key calculations to prove this out:  ROI = Net Profit / Total Investment * 100 ROE (return on equity) = net income/equityBorrowing will decrease the cash you put up & increase your return relative to the cash out.  

My property manager advised due to decreased university enrollment these homes are slow to rent over the last few years.  

With listing the price higher, instead of decreasing the price, we offer the buyer either/or a buy down of the rate or money towards closing costs.