Many policies “illustrate” the product using the past 10 years as an example (illegal in some states).

So lets have this exceltable how the house appreciation performs since 2009 :Bay Area    6.9%San Diego  6.5%Kansas City 3.2%Nationwide Average 3.1%Typical Inflation every year 2.9%..Indianapolis,IN 1.8% (just for illustration ,not accurate)Birmingham,AL  1.5%  (just for illustration,not accurate) There's a metro that's accelerating double in the inflation rate, that's where you see the highest acceleration.

Great stuff, thanks very much.Your points make sense, and illustrate why the more successful investors seem to be those who know how to buy at a significant discount.

Even at a conservative 2% appreciation and rent growth (know we can debate the numbers, just illustrating what I am looking to solve for), property #1 would be valued at $122k after 10 years and its monthly net income thanks to rent growth would be $400.

Also, I think Jay vividly illustrated a worst-case-scenario situation as he described what would happen if the loan defaulted but you are exactly right.  

Here's one of my favorite charts to illustrate:

A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred.The actual process is simple and illustrated below:Be aware of the 45-day identification period.

Whatever.Hope that makes sense as described, don't check my math, it's an illustration, LOL. :)

I confess to using content from his posts to enhance my own.As you explore Cost Seg, the following should be helpful to you.How to interpret a Cost Seg Feasibility Study and Cost Seg ReportA Cost Segregation Feasibility analysis can be a pretty "noisy" document, so you need to know how to cut through the noisiness to focus on what actually matters.Your actual ROI on a Cost Seg Study may be HIGHER or LOWER than illustrated on a Cost Seg report.What is the "bottom line" on a Cost Seg report?

So my answer is more of an illustration as to how wholesale transactions, especially those where an agent is involved, can be predatory.