Should profit expectation rise with the price of the property?

A rising tide tends to lift all boats, but the boats need to be somewhat comparable and in good shape.As for making way for further developments, they'd need to buy you out as you would own the property AND the land underneath it.

@Jay Hinrichs alluded to management, but here are some ways to fail strictly related to underwriting:Underestimating operating expensesUnderestimating expense growthOverestimating repositioned rentsOverestimating rent growth (post stabilization)Underestimating capital expendituresNot enough reservesNot enough contingenciesNot inflating exit cap rate enoughNot inflating interest rates enough (if not fixed)As an investor, you need to be able to understand and "check" all of these out during your due diligence. 

Yea but once you buy and rehab it you’re going to be out 30k unless that 60k place jumps up to 90k in value somehow.If in 10 years you sold the place you would have 60- 6k (closing costs) + 48k (120mo x 400/mo cash flow) + appreciation (if you’re lucky maybe enough to beat inflation).

Uncle @Paul Sandhu is the cream of the crop and rises to the top! 

You invest so inflation does not eat the principal.

In this somewhat inflated market, appreciation for the new property is more problematic than when I acquired the IRA properties 8-9 years ago.The goal in purchasing the new property in the short term would be to break even on cash flow until such time as I sell or develop.

Those numbers may be a bit inflated in regard to tenant vacancy and owners that are purchasing a second home and using it only in the winter.

This market feels a bit inflated, if it corrected in the next few years you could easily be under water.

It will be interesting to see what the future and supposed effect of sea level rise will have on properties like that.