Appreciation often outperforms cash flow over a longer timeline.

So the question for her to decide is do I want to continue investing my retirement in wall street or do I want to move some/all the funds into alternative assets like real estate that can far out perform the stock market.   

@Tyler Jahnke  Thanks @Jay HinrichsIt means that a OOS property needs to out perform by 20% year over year just to match a CA property, right? 

STR outperforms LTR by a long stretch these days. 

If you happen to fall under category 3, chances are you will hit a home run and out perform LP investments in syndications by a wide margin.

A higher quality property in a better neighborhood in a better city is gonna outperform any Cleveland property in the long run.

What I have found is that like cabins, one with a view and the other with a pool, that the pool cabin will significantly outperform the view cabin, all other things being equal.

In our market, you can self manage, with all the associated work, and out perform the LTR income.  

If you want to be in the top 1%, you also have to outperform the other 99%.

This will provide a roughly 10% nominal return likely over the next few decades as it has averaged that since 1900.He says it's simple and other than his son Howard, the others have little interest in investing/finance, and the sp500 index has outperformed >98% of professional money managers over any 20yr or greater stretch.