I don't think Bryan meant to say 5% vacancy is the target to shoot for, you want 100% occupied, but that no more than 5% vacancy over time would be very acceptable, since you will have down time for all units.I don't see that a neighboring property managed by a PM is a bad thing, depends on the PM and the property, just look around as to the rental environment for the subject property.A well diversified economy in the area is best since one large company towns can kill you if they shut down.I have always preferred to stay a shade under market, not getting greedy, in the long run, it keeps units rented...so long as it doesn't eat any hay.

If you want to flip you need to determine who your end buyer will be. in this environment and in lower priced homes i require a strong rental market and this usually means the only end buyer will be another buy and hold investor.

He has constructed a great environment to thrive in. 

While there are many products on the market which are designed to perform in line with yoiur general rule of thumb, there are others designed for colder environments.  

I love fresh ocean air, beach volleyball, running, and actually my career makes me obligated to be in an environment where the sexual energy is high.

People who have niether education nor profession would never find a job in today's economic environment.

An experienced partner would help.Brian was saying that "owner" financing will typically generate a premium price for a seller in this tough credit environment, perhaps 10% above a cash buyer.

Either get them performing or use the foreclosure sale environment to sell the property at a profit.Buy cheap vacant land and resell with seller financing.Use the money to get your RE agent license.  

Great question @David Tipton,For the same incremental improvement in NOI, you get a much higher increase in equity in a low Cap environment vs a high cap environment.For example, a $50k NOI increase in a 3% area (Beverly Hills?) 

I’m having a hard time squaring that idea with the rising rate environment and fed steps.