Be very careful, they over inflate the prices and sell you on the idea that the properties they sell to you are fully rehabbed with a professional management in place. 

If the Prime Rate goes up 0.25% every few months when the Federal Reserve meets, your HELOC interest rate can exceed your 30 year fixed rate (historically, HELOC rates were higher than first mortgage rates since the lender was in second lien position behind the mortgage lender so they were taking more of a risk in the event of a default) so now YOU would be taking on the unnecessary interest rate risk in a rising rate environment. 

Does it makes sense to buy a property were the owner is asking 100k over the comps but at the inflated price still can net 2k a month.

After the renew period, make sure you are doing annual 2-3% increases, which is very minimal and keeps up with inflation. 

I looked at some of the flips I've done in Seattle over the years and I can not justify the current inflated prices.

Also remember that markets run in cycles and the values will eventually rise again almost definitely even higher then they are now.  

I dont figure in capX as I "float that across the portfolio, and we try to cover big ticket items up front if possible, when doing the rehab. my suggestion is to be careful buying as the market is rising, I have backed off, the deals are harder to find to meet my needs, because buyer competition has picked up. it will cycle, so be patient and only buy Great deals!!! 

The entire DFW metroplex is doing pretty, well rising tide lifting all boats.

The rental areas will for ever more be that and be valued more like commercial RE  IE what will an investor pay for a cash flow.. the only way values go up appreciably is if rents rise.. ( like what happened in Oakland and Lake Merrit area you speak of)

With the rise in interest rates and likely eventual rise in cap rates, there will be some temporary disconnect between what sellers are still expecting to get and what buyers are willing to pay.