Tucson's been growing steadily and predictable for years.

yes, that's what everyone wants =) appreciation is tough to predict."

Financing is also easier since lenders prefer predictable rental income over the fluctuations of STRs or MTRs.Short-Term Rentals (STRs) and Mid-Term Rentals (MTRs) can be lucrative but require more hands-on management.

My question is when it comes to analyzing properties that are below market value how can you predict what the market value will be after the rehab?

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

No one can predict the future but generally speaking you are probably fine over the long run.Did your Realtor not mention the proximity to the freeway?

Here are some trends that could play out, or further develop in 2025.Leasing & Tenant Experience AI-Powered Leasing: Chatbots and AI tools will streamline leasing processes, from answering tenant inquiries to scheduling tours.Virtual Tours & Digital Leasing: These will become even more standard, making it easier for tenants to rent remotely.TechnologySmart Property Management: IoT devices (smart locks, thermostats, etc.) will become more common, improving efficiency and tenant satisfaction.Property Management Software: Platforms will integrate more AI for predictive maintenance, rent collection, and financial reporting.SustainabilityGreen building practices and energy-efficient upgrades will be a major focus, driven by tenant demand and potential incentives.AI & AutomationAI will play a bigger role in tenant screening, rent pricing optimization, and even predicting market trends.Automation will handle repetitive tasks like maintenance requests and lease renewals, freeing up PMs for higher-level activities.I'm sure there are plenty more shifting trends that I haven't mentioned and that are sure to evolve over the next year. 

It can also be hard to predict how your own personal strategy may change over time.

While no one can predict what the market will do in the future since I have started purchasing long term rentals rents have only gone up which has allowed my cashflow to continue to grow. 

This makes targeting distressed sellers, such as those in pre-foreclosure, or those with ballooning debt that was taken out in 2020-2021 when the interest rate was 7.37x lower (8/09/2020 the 10-year treasury was .56%, 1/15/2024 the 10-year treasury is 4.69%) making it very difficult for those that underwrote the property in 2020 to have predicted refinancing at these rates and likely a sale is their only option.