This is why the appraiser is supposed to reconcile all three approaches - even in an apples to apples arms-length SFR appraisal. 

I have a number of CAP rates in the low double digits (10-11%+) now and the values have appreciated as well.  

In the case of Brownstone Arms v.

In my mind if the new home was meant to be mine, then God will find a way to make it so.Amazingly, that day the bank was discontinuing a 5 year ARM with 100% financing and I was able to get the loan and the home. 

Many real estate investors require high double digit IRRs to justify REI and if returns dip to single digit or low double digit, they invest in other more passive asset classes and simplify life.Also, you don't have to keep buying real estate to keep leverage...can keep leverage on existing real estate up to the number of properties that you want to actively hold and put the excess savings into passive real estate investments or other asset classes where leverage is not permitted.  

At this point uncertainty in overall macro economic conditions makes me a little hesitant unless I can find something in a relatively stable market that produces a double digit cap rate. 

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookGo to IREM.org search for ARM certified property managers.

Go to IREM.org search for ARM certified property managers.

@Christopher AdamsGo to IREM.org search for ARM certified property managers.

Initial loan: $67,500 ($11,500 down payment - approx 14%)2 Year ARM, amortized 30 years, initial rate: 8.360%First rate adjustment: 5/15/08 - no greater than 11.36%; no less than 8.360%Rate changes every 6 months thereafter.Second mortgage / refinance:  Date: 6/3/08.