Annualized Returns Question

[Eric Krikke]

Basically what I want to find out is a comparison of a real estate investment versus what returns I could get in another investment vehicle (like the stock market).  Please help me think through this hypothetical example.

If I have $100k to invest and choose the stock market on a normal year I should expect annually a 7% growth year over year so in 5 years that investment grows to $133,822.

If instead i take that $100K and purchase $400,000 worth of real estate on 4 identical properties with 25% down, cash flowing $250 per month each and appreciating at 3% per year what is my annualized rate of return after 5 years?  What are the relevant numbers to use in this equation?