The numbers given by owners and agents may not always be in line with reality.This site is loaded with resources to help you gain knowledge with regards to determining an appropriate offer price as well the NOI (net operating income).Although the raw numbers of the deal are very important most deals have other factors that are worthy of consideration.

I have started factoring in the expansion of my emergency fund to my performance metric calculations (e.g. cash-on-cash).

Even if adult kids in the basement is a norm, adult kids with families in the basement is still not in my view.As the generation gets employed, forms families, and is able to save the downpayment, I think they will buy in many markets, they are just delayed some in my view by economic and other factors...

depends on if financing is involved or not...typically closing costs can be under $1000k if all cash deal (whether buying or selling)This doesnt factor in closing costs for realtor fees though

We almost bought a beautiful house there near the hospital, but then realized a lot of run down homes on the same street. 

I'd be really interested to see how these investments last once you factor in a longer time horizon, allowing for theft and bad tenets to do damage...A house that cost only $50,000 that brings in $300/m sounds great, but...

As rates rise, cap rates and property values will tend to fall but of course there are lots of other factors that can impact and override those.  

@Jon JosephI can not comment on HOW to expand but make sure when you do expand you factor in all the numbers.

However, there's no guarantee how long that would be (or at least, I don't have enough knowledge to know--if you know, say, with good evidence, that 2 years from now the prices will drop significantly then waiting is prudent).If there is no real evidence of large, detrimental economic factors going on (war, people moving out of the Bay in masses, an unusual amount of new construction making the supply on houses extraordinarily large for a prolonged amount of time), then there is no reason to assume that the seller's market will swing back to a buyer's market any time soon.The fact remains that the population in the Bay is growing year after year, tech companies are still expanding (to such a point where they are closing down Gold's Gyms, grrr, but that's another story), and this is still a highly desirable place to live.  

My name is Mark and I live in beautiful Oklahoma City (GO Thunder!).