I'm surprised that more investors don't look into student housing like this where they can charge by the room and increase their profitability like you're talking about. 

Population actually decreased, but incomes greatly increased and so did housing prices.

Sometimes it makes societal sense to raise rents slowly rather than in a way that will force families to relocate.If the unit has been rented significantly under market for a number of years, the tenant won't be surprised by a rent increase with the change of ownership.

So we’re not talking a huge rental increase from renovation but still my preference to upgrade and update.

Those are all up-and-coming markets although the Raleigh-Durham area has already seen dramatic price increases.

This would be a big capital expenditure, but would likely drive a 20% increase in NOI and thus an increase in value if the bank were to assess the property based on local Cap rates. - -Joe - regarding your feedback about complying with market rents, are you saying that the NOI for our property might not be as relevant as the current market rental rates for similar properties?

Now I'm looking at bigger deals.My advice is: save as much as you can, increase your earning ability, and invest wisely (real estate is the best way to build wealth)!

Both of them are offered as value-add plays based on a light reno which is supposed to result in rent increases of $115 to $150 per unit.I have my own thoughts on where I want to be in terms of property quality but I wanted to see if any investors local to the area or knowledgeable about the area could offer any opinion on what class these two neighborhoods/areas are and which of them would be more resilient in an economic downturn.

So in their mind, there is potential for increasing rents and that justifies a higher sale value...

To grow successfully you should be surrounding yourself with successful people that share your desire to increase wealth.