Many investors (particularly those who are buying) would welcome a return to less of a seller's market, with more inventory and more modest price increases. 

I work with many investors from out of state, and aside from their returns, their most important concerns are with the management of their Condo/Towhome.  

Well actually I just returned from the house with a contractor and we've determined from what can be seen that we will need to have about 25,000-30,000 in rehab.  

However as the loan is paid off your return becomes lower and lower approaching the cap rate. 

That is an instantaneous 88% return on your investment.  

The returns seem questionable.

However, nothing ruins the triumphant return to your newly updated home like realizing that everything you left behind is coated in a fine, pernicious powder.

If you are a ultra conservative very low risk tolerant investor you could pay down a income property mortgage but that is obviously going to reduce your return on your investment to a ceiling of the prevailing mortgage rates.

The higher ends are full houses or apts with amenitiesProperty is located within blocks of a Cal State University so rental demand may be consistentCOC ROI is fairly low, but I’m comfortable getting a ~5% return on my first deal if it means that this is a learning experience.

For instance, if you live in an urban core with a high walkscore, you will probably see a good return on investment because the new space will be in high demand to rent and purchase.