However, as correctly pointed out in other posts, a "growing" cap rate is actually not a good thing because cap rate is more of a measure of investor sentiments (i.e. demand and/or risk) - the higher the cap rate the higher the risk and the lower the value, but the OP (like so many other investors) sees cap rate as a performance measure where growth in cap rate is growth in income/rents which is a good thing.The answer to the OP's question really comes down to anything that leads to growth in income/rents - it's the economy, demographics, employment, location, etc. etc.

dealing with investors you talking about investor sentiment and such.it really depends on what type of project your talking about.. if its just rental property that's pretty easy.but if your talking about development or flipping then you cant have blinders on  you do need to  try to anticipate market changes.. we have done that by limited debt so if we do have a change we ride it out no problembut to take on max debt in certain segments of real estate in certain markets you do need to be more than Hey my renters wont leave  LOL

However, I share your same sentiments with SFR vs 2-4units MFs.... especially in a Rent Control states/areas like mine in CA ( Los Angeles).

I would agree with the above sentiment that OPM is never free.

There’s a lot of sentimental meaning there and it turns out he’s selling it now but wanted me to give it a shot at buying it.

I find it hard though not to believe that investor's sentiments are currently low. 

I also echo the sentiment about having a thorough inspection performed and negotiating a good discount.

Obviously it's pretty sentimental when they have lived in the house for such a long time.My thought was maybe offer them cash and explain to them the amount I came to based on the repairs after having a contractor walk through with me.Or if they had a certain price in mind I could possibly meet their price with money down and seller financing.Word gets around pretty fast about things so I definitely want to make a good first impression and not piss them off.About a month ago I talked to a few farmers about buying land.  

I have to agree with the above sentiments, this is a good direction.  

I have no idea where they (the politicians) think that money will come from (I have the same view on the last year's tax cuts - especially the corporate tax cuts) but I would continue to pay the minimum required on education debt.Still the sentiment expressed is not wrong.