If we do this, it lowers our price range of a new home, which is proving to be a difficult find with my local market being near the top.

I have enjoyed their level of professionalism, due diligence, and proactive steady approach.  

Now may not be the best time to stretch for a deal and accept lower margins just to stay busy.

I honestly want to do this so bad but I always seem to find a reason not to and the reason on this house for me is the lower CoC return.

The other thing is in those rural areas rents are often lower.  

I'm stunned at the level of activity here and look forward to absorbing as much as I can. 

Why would your goal be to LOWER your market value?

I don't know what your current debt situation is or how you feel about leverage, but this is just an example of how much further your money can go in this market.I am not as familiar with the Pratville/Montgomery market, of course, but AL in general has much lower property prices than the rest of the country.

What I keep finding out is that my target price is always at least 20% below seller's asking price.Here are my rules/metrics:total economic loss after property is stable is 12% (15% in lower quality areas)incremental rent growth after the property is stable is 2%expenses grow by 2%/yearproperty tax is 90% of the purchase price multiplied by a local tax rate (usually doubles tax from whatever seller pays)payroll $1000-1200/unit regardless of the property size (brokers claim that 30-units don't need payroll but I don't believe them :-) )reserves of $300/unit counted in expensesexit cap rate is 100 basis points higher than current cap rate (e.g. exit at 8% if current cap rate is 7%)cash-on-cash ROI 10%+ starting in the second year; first year may be lower if this is a value-add5 years total ROI (assuming sale) is at least 100%IRR 15%+ over 5 years (al ROIs are net to investors after 20% sponsor override)I can adjust may metrics to some degree but in order for me to get to the seller's acceptable price I have to adjust most or all of them to unsustainable levels.So, what should I do other than keep underwriting and waiting until the market turns down and all of a sudden my numbers would make sense for a seller?

I understand that the return per dollar is lower there, but the return per hour can be higher.What are your niches?