Not enough units being delivered to keep up with the population growth in certain areas is definitely leading to rent growth. 

I used to drive around a 93 Honda accord delivering pizza on Fri/Sat nights to add another $200/week. 

Not only that but you’ll know who really lives in your property and be able to deliver the service you want.

What are the financials you need each deal to deliver?

It is delivered down to the local housing authorities, but it is all the same.  

FinancingThe other and actually the main solution for buyers priced-out of the market for the lack of available cash is for the developer to offer financing.For example, the buyer would pay up to say 50% of the purchase price by the time the property is delivered.

With almost 30%+ increase in Rent and insanely increase in property value with low inventory, still locations like Arizona, will deliver potential if the money is coming from coastal states, specifically CA.

As such, in order to receive a 5% return on investment, the cap rate required is 6.0% (Equity portion of 1.2% + Financing portion of 4.8%).When we compute the value/price of the investment choices using our required cap rate of 6%, we see that only property C will deliver the desired 5% return if we pay the asking price.

@Cheng Xue you could ask that the property be delivered vacant, generally if a seller is going to agree to that though they want something like nonrefundable earnest money. 

There's a difference.The way I do this, is as follows:  (quick list)1 - Establish market criteria from the timeline in my plan2 - Pick a market to analyze3 - Use my current available cash as my "entry point"4 - Use the needed profit and cash flow as my "exit points"5 - Analyze markets based on that market's ability to allow my entry to deliver the exits6 - Map out locations of the properties to find groupings of properties with common sq ftg that match #5.7 - When groups in #6 exist, those are my micro-markets...the ones I'm looking for8 - Invest in the micro-markets found in #7...the markets picked me.