The predominant message on BP is to buy under market, improve and refinance (or sell for profit). This assumes the only (or best) way to make money in rental properties is to buy run-down properties. This ignores two common situations:

1. When people are improving and selling, who is buying? Obviously someone is happy to invest their money on a fixed up property with lower cap rate. 

2. New construction is going up left and right in most markets. These would be lower cap rates and really no opportunity to improve, add value and pull cash out - not in the near future at least.

My guess is that over half the multifamily being purchased is happening in one of these two categories. Yet we mostly hear on BP from those who are buying cheap and adding value. Are these other investors not on BP or are they just silent? 

I am asking the question, because I have been looking at new construction twin homes and four plex. The cap rate is lower, but I am weighing that against less CAPEX and better neighborhoods. The math still doesn't work out to favor new construction, so there is obviously other factors I am not considering. Thoughts?