With $150k in equity, that's a 6.3% ROE.

This isn't just about achieving ROI but rather looking at the bigger picture – how your investments are performing relative to your original investment (ROE) and maximising this for future success.

These guys then got jobs in the private sector or another city/county with a different retirement system - they could see what was coming before it hit.I think that some of those massive concessions have recently been overturned by courts - California is doing somewhat better financially, too.

Another thing, when a property appreciates, to measure return on equity annually, one is to add the appreciation, as if they were going to sell minus taxes and commissions to arrive at a ROE.

Based on the information you've gathered in #6, do a formal analysis of the property to determine if the cash-flow, ROI, ROE, cash-on-cash return, total return, IRR or whatever other measures of profitability you use indicates that the deal is a good one8.

you are losing out on the opportunity to earn 10% or 20% on the ROE of a great rental. 

Like I said, I have a fair general understanding of ROE/ROI and economics; however, I have no where near the experience as the rest of you on BiggerPockets!

Unless South Lake Tahoe's ordinance requiring a minimum 30 day rental contract is overturned in court, that may be the way we HAVE to go. 

However, the ROE is nothing to brag about due to the massive 7-figure appreciation that we got just in the recent years. 

Pull some cash out of the keepers, get a little better ROE.