This was part of my "deep dive" on the area and realize the prices you can get in the area reflect the amount of headache the town will be. 

@Dean Letfus and others - my other question would be this:  Why Memphis and not Birmingham, Montgomery, Columbia, Atlanta and other "Deep South" cities?  

Since we have very mild winters, the demand for their services in winter is low, and they regularly offer deep discounts on work and units, just to keep their crews working.

@patrick  @Patrick H.You can get the same thing by cliff jumping when you don't know how deep the water is.

Hi All:I'm looking to convert a 25' wide by 70' deep three story walk up building from left/right one bedroom apartments to two bedroom front/back apartments. 

However, if I were to own a high end property worth quite a bit, I would have it buried deep in an irrevocable trust.

Cap rate is typically computed with NOI, before financing is taken into account2) In computing Cap Rate, you are diving the income by the cash investment, when it's typically calculated by diving NOI by the purchase price, or sometimes value of the property.

I don't mean to be rude but is there no way you can dig deep and find the money for the mortgage for a few months (hopefully only 1 or 2) until you get the place re-rented?

These investors have deep pockets.

It is interesting to see the varying viewpoints on this subject and food for thought.Based on everything I have read in these responses, what I have learnt is that (a) our growing population should put a natural floor on home prices to reflect replacement cost minus depreciation and (b) if you can buy at deep discounts, you should do it because any future depreciation should be offset by the discount.My own decision based on all this is to perhaps continue with my flip business because it gives me returns similar to a good buy-and-hold property while keeping my cash free from any long-term committments in case the economy weakens.