For experienced investors out there, can you share how much of your returns is attributed to cashflow and how much due to appreciation?

Chris - 5% is a really good response rate, what do you attribute that to?

Can we attribute this to hitting an equilibrium point where we have more of a balance of buyers and sellers as many buyers are priced out of the market?  

When the LLC reports the property gain the LLC partners/members will get a tax basis increase in their LLC interest for their allocable share of the tax gain they report, so any cash distributed attributable to the property sold by the LLC should not result in any additional tax liability to the LLC partners/members when distributed to them. 

Consequently, the attributed value of the land was completely wrong, you wouldn't be able to build on it, and now you'd have the rehab one of the homes that was borderline fit for a bulldozer.  

Your expenses sound more directly attributable to the acquisition of the property itself.

The single greatest attribute of the property is your ability to divide into to units.

I realize I am extremely lucky, but I do attribute some of this to my core business strategy:  Buy and maintain decent homes and make sure you get decent people.  

You mentioned that you read many books that attributed to your knowledge.

Using these attributes will minimize risk.A good property management team will screen tenants for the credit and job history which will minimize the risk of the example you pointed out.