Many are choosing the most expensive they can afford on purpose.

Cap rate is a good metric.... as long as you know if all the expenses are in the scenarios.

That is to say, OK insurance is pretty darn expensive. 

I am subletting a property that I am planning on purchasing the set up where instead of any type of security deposit I am re-having the property which is necessary before I rent it out.I will have about $20,000 in expenses all before I purchased the property.

@Jason Dubon I use a percentage of the rental income to prepare for expenses.

Neither of these properties is a median-type homes in Memphis, no matter how you measure. 

@Mitchell RosenbergYou can analyze median income of an area.

Examples:44109 (median home price went from roughly 50k to 125k in 8 years)https://www.zillow.com/home-values/77009/cleveland-oh-44109/ 44102 (median home price went from roughly 30k to 120k in 8 years)https://www.zillow.com/home-values/77002/cleveland-oh-44102/ 44106 (median home price went from roughly 100k to 200k in 8 years)https://www.zillow.com/home-values/77006/cleveland-oh-44106/ It has the highest rents on average in all of Ohio for major cities and the median home value is not even in the top 3.

Since the last report, we have seen a significant increase to Median Price of New Listings, from $227,950 to $241,450.

I would hesitate to say 1-2 years to rotate out but closer to 5 years, and ideally I'd try to get the downpayment higher to at least 10%.I understand your areas though-- they're expensive.