For example, Personal Consumption Expenditures (PCE), a leading indicator of inflation preferred by the Fed, was up .7% YoY in December - exceeding estimates of 2.8%.

A taxpayer must own a “qualified rehabilitated building” for which they have incurred “qualified rehabilitation expenditures”.

So forget about thinking of it as a "return"; instead, think of it as a hedge against expenditures.

This perspective is quite common in the MF sector, especially where sales comparisons are largely based on the asset's condition and financial performance (NOI which leads to a cap rate).When comparing two properties with similar capital expenditure needs, the industry standard is to evaluate them based on a cap rate.

You're not calculating any sort of expenses in running this rental such as vacancy, repairs, or capital expenditures.

I'm a little skeptical of the amount the accountant told me it was given my expenditures and rental income over the years.

Minimal to no monthly expenditures outside of taxes.

Along with substantial property price increases we have seen exponential increases in insurance premiums, property taxes, repair costs, and capital expenditures.

Ensure you have enough passive income and capital expenditure funds set aside.

Its a matter of what is your strategy and goal.If you really think that house free and clear will cash flow enough in 12 years (after all the income and expenditure risks) to make you financially free --- well that's your plan.I think most of us are saying its just pretty gutsy at your age.