With all the international cash pouring into the market, prices are being pushed up, and in many cases, the local investor is pushed out (we're seeing situations in which international buyers are seemingly ignoring formulas and returns and simply buying to park cash or bet on the rising tide - and multifamily is in high demand).

Especially on larger structures where the rehab costs would run considerably high. leaving no room for error or any unseen issues.Even some that could be demoed and a new home put onto the land, the numbers would have to be weighed out as to the market value and the location.

Whether you were buying-and-holding or flipping, a rising market was lifting all boats.If you took the same money invested and put it in an equity mutual fund, you would have also made very good money.

At the end of the day, keep looking for an undervalued home (usually a fixer) where you've got room to build in equity with a rehab in an area that is stable or on the rise.

Based on my experience, in a rising market, whoever gets the good deal - makes the money.

I don't think the exterior on the backside is a major consideration at that point.

Even in an area like Boston, property prices can't keep rising faster than salaries forever.I'm hearing of people investing in NH due to better tenant laws and returns.

Also as interest rates rise that can cause a flat lining in sales prices.So you have two possible things working against you.

I am not sure that those types of situations are taking into consideration when doing an appraisal.  

The RE market in the area you concentrate in is the best indicator, rents, average prices, particular neighborhoods, municipal growth, local economic conditions.When you have rising bond prices interest rates will follow, money tightens, loans can get to be a bit harder but the real effect is less buying power from the public.