d) related to building cost and lack of land is supply and demand: vacancies are very low. 

@Denise Evans again thanks for responding.I'm trying to play out different scenarios.....What if the owner decides he doesn't want to do a sublease. 

These will adjust more or less depending on the area and market demand.   

Hoping that the brain power of the masses can assist in providing me with some clarity.We have been going through the process of doing a short sale on a ski condo in Colorado and arrived all the way to the closing table to discover that the HOA had not accepted the short payment that the seller's agent had indicated and as such was demanding that the short sale be re-approved with the HOA getting more of what they are due or else they will continue with the foreclosure process. 

If I were to take a property located in historic downtown Marysville (on B st around 2nd, 3rd, 4th St) and rent by the room to personnel serving at Beale Air Force Base, how likely is there to be interest or demand from someone serving at Beale? 

There are always other factors at play like neighborhood, vintage, market preferences and other factors. 

The title company asked us for a payoff demand.

I’ve never liked the idea of wholesalers playing in this arena anyway.....they often will tie up an owner who is on a clock, then they can’t flip it, and it’s like “oh well, it didn’t work out” when the owner Could have sold to real buyer and now likely doesn’t have time to do do.

Now I'm just trying to get everything lined up and stop "playing" REI.

Going from $690 to $1000 may cause them to leave, which could impact you via vacancy expenses if those units aren't capable of demanding $1000.