Inflation is an economic force that can not be stopped.

Any time you see a 'deal' or offer, ask for appraisals on comparable props, ask for hard numbers regarding occupancy and expenses, ask to see the ROI calc and have them explain what it includes (many outfits omit certain expenses to show inflated numbers). 

I think inflation is going to be an issue soon so buying now at the top of a market cycle is still wise in my opinion.

@Mary B.ThanksEssentially its 15% under market value as of November 2015 the property had been valued at that time (not taking into account inflation). 

Take the inflation value & rate of inflation (guess..look at numbers), the 'actual neighborhood, the 'neighbors'.

I was working on the basis that in LA the advertised cap rates on websites like loopnet are between 3-6% with some of the most over inflated prices in the country, so assumed there may be other cities where they have significantly better cap rates from undervalued markets.

As you just found out when you sold, prices in Sioux Falls are inflated.

Prices are not as inflated and I have local bank and contractor connections.Looked at a 6 unit building very seriously but it was a bit expensive for my first investment so found a single family, a high school friend bought when he was in college.

You are hedging against inflation when you have a longer term.

So since it had a low cash flow we put it up for sale with no credit check and a very low down payment and inflated rent compared to the market.Then you do a Lease to help build credit to provide financing to purchase the house at the end of the lease.