Calculating a 5 Year Total ROI for the SF Bay Area

[David de Luna]

When calculating a five year total ROI, I'm using 7% of sales price as the selling cost. I'm using 2% average annual appreciation. All you SF Bay Area investors, does this seem par for you? If not, what numbers do you usually use for a five year total ROI? I know my calculation includes total cash flow over the five years (I'm not factoring an appreciation rate for rents over the five year period because it's seeming to be all over the map - too iffy to include for our area), and my total capital invested, from the down pmt + closing costs, to initial rehab costs (not funded from rents). Any counsel on this?