IF they do the opposite then you'll likely see a suppression of the potential value of the home. 

Plus, with institutional investors showing appetite for large SFH rental portfolios and increasingly getting into the space...I bet you see more traditional looks at SFH properties (applied to the portfolio).As far as my city...Colorado Springs...cap rates are too damn low <shakes fist at air>. 

@Sarah Ferguson, I think it depends on your appetite for risk.  

Just cosmetic fixes like paint, flooring, and others is the extent of my appetite for now.

No sale date (suppress against the first list before purchase.Don't remove duplicatesNow run these listsEquity Percentage - 30% or greaterEquity Dollar - 1 to $1,000,000 (this will increase to 200,000 above median in higher price point areas) Property Type - SFR, Duplexes, Triplexes and 4-Plexes Total Assessed Value - 1 to $1,000,000 (this will increase to 200,000 above median in higher price point areas)Total Current Value - 1 to $1,000,000 (this will increase to 200,000 above median in higher price point areas) Include All occupancy/owner types (Trusts, Corps, Absentees and Owner Occupied)Now run two lists Sale date from 1-1-1900 to today.

Your gut feeling is usually a good indicator that you may be suppressing some truths that may be bordering your subconscious.

The deal was quite profitable and left me with an appetite to do more projects.

There's a reason why most hard money lenders or private lenders don't offer or have an appetite for these types of loans.

PML typically just means that a private investor or fund or insurance company has appetite for riskier loans with higher yield. 

I guess it depends on your appetite for risk.