Generally a low cap rate market is because of anticipation of increasing rents and appreciation where high cap rates reflect little change in either rents of value.

Two things I experienced, renovations took an extra month and a half than anticipated and  reserve account helped manage a few "hidden" updates that were best addressed immediately.

If things were the other way around and the town counsel had heavily developed in anticipation but growth slowed, we would have those complaining that we wasted money overdeveloping.

I would get budgetary quotes on the anticipated maintenance so you can understand whether your 5% target is reasonable.

That leaves a smaller cash flow than I was anticipating.  

Hello Seasoned Investors,During my first visit as a newbie to my county sheriff sale website few min back (I went to familiarize myself for potential future foreclosure investments) I found a property virtually next door to where I live and I in fact I know the owner as well.Few facts taken from the website before I type my questions:The Case Type is: Complaint In Mortgage Foreclosure.Somehow the current appraisal price is way too low than I would expect.The most recent docket text states: COURT ORDER IN REAGRDS TO PLAINTIFFS MOTION TO REASSESS DAMAGES ON 01/31/2014 TO XXXX AND SHERIFFS OFFICE ATTN: YYYYThe sale date is listed as postponed to 4/30/14.Not sure how to approach this given I am new to all this and was not anticipating such a sweet deal which I could manage so easily as 'buy and hold' goal for this year.Things I am not sure about:1.

I anticipate that you are correct in the thought of a colloquialism specific to the PIT region. 

Heating/cooling systems, roof, etc. are all recently replaced, so I would anticipate few maintenance issues early on. 

I've got a S8 tenant and I found out that the local PHA actually anticipates rent increases, which makes the increase easier...the tenant doesn't care so long as the increase is within the PHA's increase.  

So the place is under contract.Next step(s) is to set up inspection on the place, with the anticipation of them having to give me money to repair some inspection issues (they had a previous contract fall through after inspection, so I know stuff will turn up).