To add to the fun I was in the middle of my first major rehab, which was on a 100 year old house in a historic district, and I was trying to sell my personal home all while working full-time. 

Looking at the below graph on cap rates ie historical and forecast, you can see that Cap rates are expected to reach a bottom around Q4 2017/Q1 2018 and then are expected to go up from there. 

Gilroy just barely regrouped its historical price(see my ActiveRain blog posted) after 4 years of sustained growth.To push up the demand there got to have more highly compensated jobs fueled by VC seeded money. 

Hi Jay,Thank you very much for sharing historical information.I feel same way, that market will not crash very soon.

Before that, I worked for a non-profit that completed period-accurate restorations on homes for sale in historic districts.We also operate a small-scale pastured hog farm for income.My family and I became interested in real estate a few years ago and have been getting "educated".We are looking forward to our first deals, and have recently started making offers in our local market.Thanks for reading!

The property is a three family with the bottom floor (3 bedrooms) renting at anywhere between 1,000 and 1,200 historically, the second and third floor are 2 bedrooms renting for 625 and 825 respectively.

Given all that has been done in upgrades as well as skyrocketing prices in the area, is there any way to ensure that an appraisal is realistic to ARV/present value and not just tied to historical sales price.2.

I need a contractor in Sacramento - this project is a historical home - so it's out of the ordinary, but definitely an adventure!

If so, I would sacrafice some return to get a solid B+/A- deal locked in now at historically low (darn near free when considering inflation) interest rates.  

I've looked at some historical sales figures on a few, and it seems to be the only area where there is a markedly downward trend.