Rent analysis calculator

[Valentin Zalutskiy]

Hello, I watched my first webinar today, unfortunately they didn't get to my question. Webinar was in analyzing rental properties. Part of the calculation is adding a property appreciation percentage. They put in 2% which is lower than average annual increase. My question is, the prices is really high at the moment, it's hard to say if the market will increase, in fact I believe it might go down. Can I calculate that into the equation somehow? thanks in advance.

[Dan Maciejewski]

I consider appreciation a gift from the real estate gods.  You can try to predict it but most people will say you can't count on it and shouldn't build a business plan on  it.  I like to see 4% (my market has been a steady 9-11% for years), and in valuations, I like to either set it at 4%, or set it at zero, so I'm not convincing myself a n okay deal is good.  

Rent appreciation is a little easier to predict, and unless you live in a one-factory/employer market, should be a bit more stable.