My neighbor down the street listed his house early last year and got a competitive offer in the first week (10% below asking, but about what I thought the house was actually worth), and he countered and lost the buyer.  

I don't think you'll find a market with better macro economics that also has the upside potential that we have.The fourplex market has been particularly competitive in the last couple years, and that has dropped off a little bit, but deals are still selling fast.

What happens when a home is sold at a fraction of the assessed value? 

Wow, I didn't realize it was quite so competitive and limited to specific locales.

There was no competition at all.

I'm new to REI, and it sounds like finding deals is a very competitive process.

If the new apartments have more amenities at a lower price than you, then you may need to either lower your rents or improve your property to be competitive.

Less competition and the best advice is just jump in.

BRRRR is the only way i'd still consider this possible, but deals are rare, competition for those is fierce - i hear about 1/3 of all purchases are from investors these days.You (or someone you know) need to know the areas and where to invest, and where to stay away from.

Maybe we can connect in the future being that we are both in Cali- a relative competitive/fun market!