Hi Jeff,That's a great theoretical question, and one I used to ask myself when I was 15 years younger and fresh out of undergrad with "efficient market theory" "optimal capital structure" "modern portfolio theory" "increased returns are correlated with increased risk" and other articles of faith that had been passed off as fact by the professors in the economics department at my very prestigious college.A decade and half later I no longer buy into the idea that markets are efficient - neither stock markets, nor real estate.There is a deep divide between people who buy the theory and those who don't.

I know that this neighborhood is very prestigious and people of a certain stature WANT to live here.

A local investor I know has 1 unit in prestigious towers in Montreal.

@Brandon Turner First off I would like to say how much I thank you for helping start such a now prestigious community of people and information!!

Like I mentioned in my previous post, Lafayette and Louisiana may not be the most popular or prestigious markets, but good gumbo(!)

Market rent is about $2,200 right now, and could go as high as $3,000 if I added some sparkle (or an additional bedroom).My wife and I wants to buy it from him, but we're trying to figure out the best way to do it to reduce taxes (property / assessment, income, excise) and puts us all in a better financial situation (short-term and long-term).If they were to sell it on the open market for $300k, they'd incur 10% selling costs (closing costs, realtor commissions, excise tax) of $30k and get $270k in cash before taxes. 

There is less, recent development, so you're likely to find units in need of updating.Fair Oaks benefits from it's proximity to Folsom as well, but it has been a prestigious, long standing community in it's own right before Folsom became super-hot.  

I'd be happy to come over and show you my tricks for getting the light fixtures sparkling again.

The US side had gone the quick cash industrial route many many years ago and now pays the price, the Canadians took the slow growth tourism way and are a real sparkling gem.

Eller is a very prestigious school I would love to be able to attend.