The high rent growth has been supported by low vacancy and a lot of build-to-suit office inventory vs speculative developments.

I won't speculate when. 

A is completely safe, but usually not great for investing due to higher prices.There it is again, the California view.By that definition, every single place I own is D, 7/8 of greater Pittsburgh is D, and anybody who lives in the actual city proper has to settle for D unless they live in the newest multifamilies being constructed as infill by speculative syndicates.

Jon,True...I excluded property appreciation becuase it is somewhat speculative, but historically I believe its around 5%...if we factor in 5% appreciation per year, this would make his properties worth $815k after 10 years or a $315k appreciation - 15% capital gains = $273,915 net gain/10 years (not sure if thats correct tax rate) in values or $28,000 a year in property appreciation...Assuming property appreciation, the renter would be on top...

In markets where home values are higher and rents have not kept up it is impossible to experience that much cash flow.Then you can't own rental properties there except as speculation.

That's something of a speculative investment choice, IMHO.

There is a huge difference between our market now and the money built by "insane speculators, Inc" in 2004-2006.

If you're not hedging you're speculating ;-)

Normally we don't buy land on speculation, we already have a value add purpose. 

Like you said, you likely have to put money in, and is really an appreciation/speculation play.