Obviously that fluctuates based on the property and area though.

But they are great way to make some great returns in this low interest rate environment, long as you can stomach the fluctuations and keep an eye on the dividends as they tend to vary by qtr...best regards,Chris

I think the other confusion is that we often think of dollars as something of fixed value, but the value of the dollar fluctuates just like everything else.

On the surface, the answer appears to be simple...BUT one will caution that in order to make a true determination, it requires a lot of actual research on a local market/neighborhood and the answer is actually much more in-depth...so take this with a grain of salt..lolClass A- Newer Growth Areas (new construction, rebuilding of infrastructure, core fundamentals reflect strong growth, low unemployment, pro-active government, home prices increasing, vacancy rates decreasing, demand slightly higher than supply, School Districts usually have a 5+ rating, etc.)Class B - Older yet Stable Areas (Little new construction, no major fluctuation in growth or reduction of population, little to no change in employment opportunities or unemployment rates, infrastructure is old yet functional and not being updated, supply and demand are fairly equalized, rental vs home ownership relatively equal, home prices stabilized, School Districts usually have a 3-5 rating, low to moderate crime rates, etc.) 

I'd like to specifically know what sectors are being referred to and what is being called a recovery.There's obviously no way of knowing which way the economy is headed except in hindsight, so who knows if we've hit bottom and are seeing the first signs of a recovery, or if this is just a short-term fluctuation...but, here are some indications that we may have already hit bottom:- 11 of the 12 districts in the Fed Beige Book are indicating that conditions have stabilized, improved or firmed.

I bought the house for 145k and it's worth close to 300k now although we know that will fluctuate with the current market.

Do you agree that commodities don't fluctuate as much as people think, and that it's actually soft currency that fluctuates?  

With interest rates where they are I would take advantage of that if you're comfortable you have a long term job that is not subject to market fluctuations (e.g. deep water drilling or onshore fracking).My only other question is this: are you sq ft rent rates / investment in California significantly higher than Houston that would prevent you from selling the CA property?  

It is pegged to the dollar and does not fluctuate at all...even during the March drop.   

It should not come as a surprise when the actual returns vary from the averages for a particular strategy, due to all the risks inherent in underwriting multifamily: management risk, changes in submarket, cap rate and interest rate fluctuations (if refinance is part of the exit strategy), etc.