So, unless you're confident these local drives are going to give you some real appreciation, these are money losers.If you get annual appreciation of 5% (very speculative, IMHO) one will be worth $191K and the other $146K after five years.

That has happened here in Denver as they have built light rail lines.Do I think 15% annual appreciation is sustainable?

Now with free annual credit reports from the 3 major agencies, it is a no-brainer.

Easier to look on an annual basis.Income: $12,000 (rent)Expenses: $4,800Interest: $4,800 (only the interest part of the P&I payment, just a round number for the example)Depreciation: $2,000 (value of improvements / 27.5)Taxable Income: $400 (12,000-4,800-4,800-2,000)Tax: $112 (at 28% marginal rate)So, the income isn't totally tax free, but very close.

Others would rather work hard (for example, undertaking a difficult apartment building "value play") and shoot for a 40% annual return (which wouldn't be unreasonable).

He's actually a 10 week old wolf from a wolf preservation ranch.

If we see 4% annual depreciation for five years, the 4% for five more, prices will be right where they are right now, in nominal terms.

The problem with this is the average appreciation of a home is generally under 5% annually.

You can now qualify in December and still get the full year contribution limit.The annual contribution limits for 2009 are:Self under 55 $3,000; Self over 55 $4,000Family under 55 $5,950; family over 55 $6,950.

His annual income that wasn't enough to live on?