But yea you are paying a premium.

That's why the flips can get a bit more of a premium since there isn't any new construction in the city. 

The intention of the investment properties is to hold for appreciation over the next 10 years as well as some cashflow.I don't like the idea of waiting for the market to dip but I don't want to pay a premium.

Then I’d look rent single rooms on first floor with utilities included in the cost for a slight premium as it’s single rooms.

If it is in a high crime area, there are a few things you will see,1) The insurance company may exclude theft 2)  They may have a separate Theft deductible that is higher than the rest of the policy, like a $5,000 deductible.3)  They will cover it, but the premium may be double or triple the other options that exclude it.

The great homes in the great areas will likely be bought by people who want to live in them and can pay an "emotional premium".

Simple game of would you rather:Deal #1) Three Unit Multi-Family      Cost: 950,000- minor costs for updating (paint, buffing hardwood floors, minor electrical work totaling 7,500)Two units rent for 2600 per month (target of 2800 year 2018) Penthouse luxury unit rents for a premium of 3000 per month (target 3200)Parking on site rents for additional 250 per monthTaxes: 7200 Insurance: 2200 Various Additional Costs: 640 per yearIt rents year over year and has never been on the market more than two weeksDeal #2) Single Family Flip1.  5200 Square Foot Home2.

Maybe I'm nuts but I think that pools generally increase liability (fenced or not) and the insurance premium might not be too pretty.  

So could the location explain the premium in rental pricing?

The family stepped up and helped her until she passed.Multifamily is at a high premium right now with everyone under the sun looking to invest.