@Michael Haynes - btw, agree that next year is shaping up to be a challenging one - rental prices here in large CA markets are dropping quite rapidly - a lot of apartment complexes are coming online.

I'm a CPA in Grand Rapids, feel free to message me, I'd love to give some free advice and hear more about your plans. 

We are buying at a or below 70 percent rule in a rapidly appreciating market, hard to beat with new builds. 

However, this is rapidly changing technology. 

Obviously depends on many different factors, not sure what market you’re in but here in Grand Rapids MI, cap rates are at 5 mid 4s.

In my listing I highlight the fact that it is a very up and coming and desirable area going through rapid redevelopment, super close proximity to many things to do, historical facts about the area, etc.

I handle all setup costs (mostly running utilities, but in some cases laying a small concrete pad) , pay all utilities (incremental to the money for the lease), insurance, etc., so the only commitment from the the property owner is really in the space they're providing me for the machine. 

They did escalate in $5k increments but he only went up to $400 and I advised him it would go to $410 to $415, so he should escalate to $420 at least if they wanted to win.

Everyone has to start somewhere, and we have grown rapidly over the last 12 years servicing new and experienced investors fairly.

On the other hand, if you are looking for rapid appreciation, you will tend to look at the fast growing larger metros where cash flow is more difficult to come by.