@Virgilio Garcia and @Omar Sanchez my thinking on a cool down--and let me be clear I'm talking about property values rising more slowly, not a reversal--is based on a couple of factors.

In commercial real estate, risks and rewards rise with the amount of debt used to buy and improve a property.

Leverage riskBorrowed money is a risk-reward magnifier.In commercial real estate, risks and rewards rise with the amount of debt used to buy and improve a property.

As rates rise, profits and stock valuations tend to fall.  

I would think with the capital there and the closeness to the shops and restaurants downtown it should hold or rise and fall with them in value. 

So Jil, because of the IRS incentives for you to NOT pay off your primary,  you seem happy to continue paying $3,263 per month for many years to come, even well into your retirement, because after all, you are SAVING $700 per month vs if you were renting it (and will save even more, once rents continue to rise)?

Real story.New investor replaces the front and back steps but the rise is not to code.Real examples are easy to find, just check some the do it yourself threads on BP.  

Hey Family,I found the worst house in the best neighborhood Here are the specs: Price Listed: $149,000Price Offered: $139,000Price accepted: $140k plus closing costs.My ARV is based on J Scott's formula.After Rehab Value : 250,000 (conservative current market estimate) to 300,000 (prices are quickly rising in the area, and the market is forecast to be better in 12-24 months due to new companies entering my area.) 

If you find a hard-money lender offering 100% financing, they are either trying to get upfront fees from you and will never lend you money, or they will not have money to loan for long as their defaults rise.

That is why you MUST put in backup offers, and make them sign it. http://www.denverpost.com/business/ci_29855055/frustration-rises-fifth-home-sale-deals-fall-throughI put a client in a similar situation UC last year on the 5th of July.