Second, real estate investments generate a return in one of two ways - Cash flow and appreciation.If cash-flow is negative, is the appreciation making up for it?

Hello,I am a real estate investor located to Southeast MA, I own and manage a small portfolio of 23 units and am looking to expand and scale out of state as the returns and market have been quite difficult in my area: due to CAP Rates, specific building class I am looking to invest in, and rising interest rates/minimal inventory, as well as it would be nicer to be diversified and in a more landlord friendly state.  

Quote from @Timothy Hero: Sorry if this was already asked, but what's an average return per year, in terms of cash flow?

I would like to pull out equity from the homes to build either a house on each or an ADU (they are zoned multi-family) depending what makes the most sense on returns and what is feasible.

We can only hope future clients get their expected return.

I will likely be challenged to get a 1 to 1 return on adding the AC, adding an EV charger, converting a sound studio to an office, and furnishings.

As a retired CPA, I saw plenty of tax returns by these firms that clearly were done poorly. 

Preparing a tax return with one long-term rental is not rocket science.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

So, there is no argument for using margin account to try meet/beat REI returns because it would just nurf your WS returns down all the more, expanding the divide between the 2.