Prices are definitely on the rise, but that's a supply and demand issue, rather than speculation.

Anchorage investors, do you think it's worth speculating on this property if I can't make it cashflow, based on the property description?

Difference of opinion on the comps and cash flow deficiency are just two motivators that might be at play here, but without an complete understanding, this is just speculation.

At this point, this investment appears to be highly speculative---I'd focus on property investments that allow you to calculate your risks.

Waiting on price appreciation or rent increases is purely speculative.   

So speculating they will settle for 10-25% of value with investors, they already know heirs typically just walk away and something is better than nothing.

But if you're not willing to speculate on land plays or other forms of higher risk, that might eliminate areas going for a cap of say 12-15% (maybe a troubled park, troubled area, small park, etc.).

I understand we're in a hot market and speculation is driving prices out of its fundamental behavior but, I was wondering if my analysis is lacking some type of piece or my math is from another planet.

I know this is very speculative.

The law was put into place after the 1929 crash as some banks were speculating in real estate rather than focusing on lending money.The regulators who check the books of the bank will require excessive capital reserves for any property taken back in a foreclosure.