It has not proved to be an effective measure for me.  

Ive spotted quite a few buy and hold properties that could give you ok cash flow but also why are you aiming for buy and hold first?

It will NOT drop when you hit a 20% equity like it did in the past.I researched the areas (schools, access to highways mostly) and I found that the Mesa Park area is fantastic for my aim of initially living in then renting out my primary residence.I bought the home around May/June which was the up swing of the market, now you can find homes for 10-15k under list price.

As an example Im aiming for a 60k property needing a little work spending around 10k on and aiming for an ARV of 100k-110k.

Now, we have a more measured market stress on our hands- Yellen gradually tightening the screw of interest rates- and we lack the universal sentiment that real estate can only increase in value.

There was no loss of money as the last day was paid by the previous tenants and the first day was paid by the new tenant.Sorry I know that was quite long but I was aiming for the most clear explanation I could give on the best scenario for your situation to make all parties happy.

In one measure, you are doing alright by getting an extra $100/unit rent in the rehabbed units; 1.25% of value per mo.

Make sure you are doing thorough background and credit checks & always counsult with legal counsel to ensure you have the utmost in protection measures within the agreement before moving forward.   

If the last comp was for $165,000, I'd be aiming way lower than $160,000.

Once you tsrat going back further in time you find people who have bought their home in a market with lower price points than today - they are emotionally more open to accepting your offer.While you are on your quest to the perfect list keep this in mind:"Ready, aim, FIRE" works better in most combat situations than "Ready, aim, aim, aim, aim, aim,..."