@Ryan MooreProbably the best bet would be to take a look at comps from the last few years for the property you're using this appreciation figure for.For example, if you're wondering about the appreciation rate for a 20 unit building, you'd look at the sales of similar properties over the past five years to get an average appreciation rate over that time.It's important to consider similar properties because the market for a 100 unit complex is much different than the market for a 20 unit complex (sophistication of buyer and price range being the big differentiators).Also keep in mind that your fourplex is a residential multifamily property, not commercial.

You will eventually have to get payroll set up to take a reasonable salary, as you suggested.

We just talked to the girls who did our payroll.

You'll have to take payroll as well.

That salary would be subject to payroll taxes, but any additional distributions would not.Not exactly what you asked, but I hope this helps.

Not to mention you need to hire people, reserve rooms, design compensation plans, do payroll, etc.  

You'll have to pay your own estimated taxes, including the self-employment payroll tax, but you may be able to deduct business expenses W-2 employees cannot deduct.

In the end we understood that the seller just wanted out, didn't take care of the place and was not a sophisticated investor.

If you find deal w/ seller financing, it's probably b/c all the sophisticated cash buyers wouldn't bite.  

I don't think non-NYC Brokers realize the level of sophistication that certain elements work over here but I think you all hear about it.Even Kushner Companies have been accused of corruption in his dealings with Rent Regulated Apts.