Purchase price: $145,000 Cash invested: $125,000 Sale price: $350,000 Moderate cosmetic rehab of a single family home.

We have a very low cost of living, a very diverse economy independent from one major industry, a growing number of hip start ups, moderate climate (yes, we do have snow in the winter..), but no hurricanes, earthquakes, droughts, wildfires and we sit on of the largest fresh water lakes in the world.It is a myth that Milwaukee does not appreciate.

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Moderator Note: keep discussion to how this may affect real estate.

I don't know how deep real estate prices could go, but if you can manage to buy at a moderate discount due to the panic now (what we're doing) I don't think values would go much deeper than your basis if you're in dealing in working class assets in cities that don't tend to appreciate or depreciate very heavily as the market cycles.

Windsor is a great "small town" that generates good cashflow with moderate chances of appreciation (relative to the CT Market)Granby even a smaller town feel than Windsor, rentals are in high demand and rent prices are high.

I'm not a tax professional, only a moderately experience investor.  

A moderate rehab is $10k to $15k.

Could be something that you think is a sure thing with moderate returns, or long odds on a huge return...

Maybe start with a moderate increase from the current rent if they seem to be a good tenant.