And since we care much less about the top line, and much more about what's left of it after expenses, we should likely base out valuation decision on that NOI figure - 2% rule does not do that, which makes it criminally incomprehensible as an analysis tool, let alone a "rule".In order to use the NOI as the baseline income we cross over to the capitalization method of valuing property, whereby the NOI is capitalized via a multiplier know as the capitalization rate to arrive at a valuation.Finally, to Bob's comment, since cash flows are not static and must be discounted for time, inflation, and opportunity cost, a complete analysis would underwrite to the IRR (internal rate of return), which would take into account all of the movement of cash, including the exit which captures the appreciation and rent growth, if there are any.

This rise will give us all something good like respect, money, happiness, love, even new business partners with wholesalers you never thought you would deal with.  

Then, since most tenants are on month to month leases and 100 dollars under market rents, that NOI will rise dramatically.  

Many of us have not experience an interest rising environment like 1941 (ten year was 1.95%) - 1982 (ten year reached 14.59%) and the investment strategy will change when the interest rates rises in the years ahead.  

Values have been rising slightly in that neighborhokd, but I don't think it really fits this trend too much.

Keep refinancing to purchase the next, and if interest rates rise it will be a small blip in your progress - that's part of investing right?  

An ARM HELOC that has no capacity to borrow against is just a ticking time bomb if interest rates start to rise (which could happen if the US dollar decides to devalue).

5.How much exposure does the micro region to Fed’s incoming interest rate rise?

On one hand, I'd like to put my rental money into equity instead of the 1.2k I'm paying monthly right now, but on the other hand, the condo prices in Vancouver proper just seem so inflated.  

Any specific neighborhoods on the rise.