You are right the area is very expensive, which makes it a bit difficult.

Rents have increased here quite a bit but much less inventory from what I've researched.

Looking to increase my knowledge in real estate to for both personal and financial gain.

Slowly increased rents flipped on the 5-7 yr mark.

Any new laws coming down about increasing property taxes?  

If the price drops, then the cap rate would increase and by your explanation would mean higher risk.  

It's been really difficult trying to find a property with how fast things move.

30 yearsannual taxes - SAMEannual insurance - SAMEMonthly $1967.87 - this is really too big of a bill to cover, but not if I could supplement some funds from a renter of my current home.Current home costs me $480/month and that includes taxes and insurance - with increase to a 6%tax rate lets say it now costs me $600/monthI can get a reasonable $1700/month in rent for my current home.minus $600 for mortgage on current home = 1,100/month, leftover/cashflow/whatever you want to call it.New homes mortgage of 1967.87 - 1,100 (from current home rental savings) = 867.87/month out of our pocket. - this is a number that we would really love to work with each month.Scenario 1 minus Scenario 2 = a savings of 746.33/month (8,955.96/year)Now with this scenario, obviously we have the mortgage of new home offset by the rent of current home, but we don't have the money up front to do any renovations right away either.

Recently, I made the decision to really dive in and increase my real estate education.

To limit the cost of this you can raise your rate to absorb this 2.15 - 3.30% upfront fee that is normally financed into your loan but it will take significant rate increase to absorb this chunk.