This means there is a perpetual housing shortage long run.

There will be no shortage of opportunity to lend if you pass on this deal.

Apparently, there is no shortage of buyers who don't know that you can only catch up at 5% a year per the Hayward Rent Stabilization Ordinance.

Take a look at this chart showing the four phases of real estate:OK, that said - we've got declining vacancy (3.3% apartment vacancy rate - lower than NYC) and a housing shortage so we should be well into Phase II - right?

There is no shortage of buyers with 25%+ cash downs and good incomes in my markets.  

@Bob FaulisThanks for sharing the details of this project.I'll tag on a couple of question as my friends in the private equity are all telling me the same thing right now: there's a lot of capital floating around and a shortage of deal flow.How did you find this particular opportunity and what kind of deal with the land owner did you put in place to make the deal work?

Long Island, especially Nassau county is tough with high taxes, pricey properties, and no shortage of investors looking to get into real estate.

One colleague asked me why I wouldn't "just rent out the rec room illegally so I have the duplex - the "City would never find out - after all, there is a shortage of housing in the area."  

There's no shortage of folks flying in to check things out.

There is no shortage of bad ones out there, and if you can find a good one, make sure they know you appreciate them.