I'm also hoping for some good appreciation because of the neighborhood I chose, but we'll see.For my next deal I'm thinking of a multi-unit, because the cap rates seem better for those in the area in which I'm interested.

I have access to the MLS and understand the CMA process but alot of the time I dont know alot about the neighborhood and I wonder if it is a bad idea to rely on MLS comps without having the comfortable feeling in an area.

When subsequent rental prospects viewing the property for the 3rd time realized they knew this neighbor from work, they started asking questions regarding the neighborhood.

Ugliest house in a beutiful neighborhood.

Don't forget to check out the neighborhood while you're there.

From the HUD appraisals I've seen, it's still based on comps in the area although this often doesn't seem to take into consideration the condition of the house.I've walked through torn-up dumps that needed 30-50K in work to get it back to normal and I've seen near pristine houses loaded with tons of upgrades for the neighborhood.I occasionally find the perfect storm of well below appraisal and in great condition in a neighborhood I think will pop in the near term.

Low sales prices in a good neighborhood.

Not a spectacular neighborhood, loud bar just down the street, etc.

We've researched areas and have a couple good neighborhoods in mind.

As far as the numbers go, neighborhood ceilings, construction, appraisals, I'm comfortable with all that.