In a rapidly rising market, some investors will pay more in anticipation of appreciation, but I call that "gambling".  

Are you buying in areas where properties are appreciating rapidly? 

Income dependability depends on the tenants who occupy your property.The tenant segment we've targeted for 16+ years has proven to be very dependable.2008 crash - Zero decline in rent and zero vacancies.COVID - Almost no impactEviction moratorium - Almost no impactThe average tenant stays over five years.Only six evictions in 16+ years out of a tenant population >1,000.SummaryThe perfect storm of rapid population growth and land shortage almost guarantees that Las Vegas prices and rents will continue to increase for the foreseeable future.Many people remain concerned about interest rates.

My strategy is to work the real estate cycle by buying for appreciation when the market is cratering and near bottoming out, and buying for immediate cash flow (in areas that offer it) when the coastal market is rapidly appreciating and closer to peaking.  

Hello BP.The City I live in (Cedar Rapids, IA)  requires us to use the city trash for 4 units or less, which means 4 separate bins instead of one dumpster for each of my 4-plexes (I have 3 buildings).  

Some of the other cities you mentioned are rapidly growing and Connecticut is growing at a small clip in Fairfield County and is stagnant in most other parts of the state. 

If nothing ever breaks, cash will be available for you for any other purpose.As long as your property will provide you with positive cash flow on a consistent basis, you won't be rocked by market fluctuations, including rapid depreciation of real estate values.

Yes you might have all cash and that's attractive but it NOT that attractive to take that big of a difference.As you said if the land is real valuable redevelopment can give you great returns on the back end.Also a 7 cap might not be bad if you discover for instance that rent rates are increasing at a really rapid clip per year on average for that area.

Cedar Rapids/Eastern Iowa folks, anyone been involved in an REI group that would recommend it.  

Pricing is lower although we are increasing rapidly due to lack of inventory and the influx of out-of-state buyers.