Each step you take reveals a new horizon.

But to the question at hand when the real estate market get hot like 2004-2006 every house will see crazy appreciation regardless of area so buy the investments if your time horizon is 5+ years.

I'm just trying to expand my horizons by updating out of state folks on what I am doing and hopefully creating more funding in the process.

What time horizon do you guys use to determine the value of the upgrade...i.e. if I spent $15,000 but was able to push the rent up $500, then I could recoup my costs in 2.5 years and assuming I didn't have to do any more upgrades for the next 10 years, I would pull in an extra $45,000 in rent over that time.  

Check with First Horizon... they have programs to refinance one day on title using the appraised value, even some HELOC programs to .pull cash out.

"Buy and hold" might require a long term investment horizon: 10-15 years (unless you are starting with 550-600k).I think if someone was really motivated, they could join a RE management company right after college to learn the biz.

Craig when you run the numbers you plan the "time horizon".

@John Armando, If you have the flexibility to extend your time horizons past 2 years then you would be able to sell and take the % of gain apportioned to your primary residence as tax free with no reinvestment requirement.  

I personally would sell unless i was fairly certain that some significant appreciation would be on the horizon.

I would sit down with the local building inspector & determine what is on the horizon for code compliance & fire safety for multi's/apartment buildings.