But, I NEVER inflate the ARV, manipulate comps, or intentionally understate required rehab costs.  

(Actually selling for, not just what they are listed for on land selling sites where the listing prices are often inflated).Depending on the county you may also be able to research recent sales online to see how much other properties have sold for.

Of course interest rates will rise eventually and put pressure on housing prices.

What neighborhoods seem to make sense if a low cap rate is incurred...meaning is that a growing/great neighborhood with values expected to rise? 

Below some knowledge to share:Property values rise and fall due to recurring life cycles of development, stability and decline.The development phase of the cycle is also known as integration.

According to a recent #BloombergBusiness article (Starwood Bets $5.4 Billion that Apartment Rents will keep Rising, Oshrat Carmiel, October 27, 2015), Starwood’s CEO, Barry Sternlicht, indicated that the purchase decision was made not on the presumption of strong rental growth, but on a rent growth that is projected to increase just marginally over inflation.

(Buyers in that area have crappy credit and can't qualify ) Her husband had passed about 9 months ago, and she was now living in a high rise so the house was vacant and had been for a few months.Because of my personal relationship with a close friend of the lady, I was able to meet with her and talk and negotiate a deal. 

Here in MI, my value is still well below where it once was, albeit, I clearly recognize that it was over inflated at that time and was not really realistic to begin with, so perhaps it is properly valued now but it took a hell of long time to begin growing again. 

Building PRICE increases may be a result of inflation, which makes the dollars cheaper.

And when you add to that the fact that interest rates will rise soon, further constraining people with variable rate loans it does not paint a pretty picture.Remember an increase of 14,000 non-farm payrolls in June doesn't even come close to covering the high school seniors who are trying to get low wage full time jobs.