When/if most of the local residents in the area who derive their income locally (and traditionally) are unable to afford the properties, due to the average house price exceeding local average wage substantially, there will be the coincidental buying by investors whose income isn't hinged to the local economy.

@Bill Hampton An LLC can open a brokerage account and invest in equities, bonds, and derivatives. 

Even though the IRA pays this tax on income derived from the use of non-IRA funds, you can still achieve a higher cash-on-cash return for your IRA dollars as a use of leverage.A self directed IRA or 401k may also joint venture with another party, including the account owner in certain well structured arrangements.  

I cannot derive a reasonable Cash Flow analysis using your data since you left out several key numbers.  

Having a balance of property and fund level debt, and various derivatives to hedge interest rate exposure, can only be achieved in a Fund.  

In order to formulate that, they will survey the market for similar units and apply a market derived rental rate for the units to arrive at the potential gross income. 

We still have no full idea the extent of the defaults that can and will occur in the unregulated OTC derivatives market that banks and hedge funds have been playing with, which is estimated to be somewhere in the ballpark of $500 trillion.

The issue here is if Goldman Sachs misrepresented their role in creating mortgage backed securities, collateralized debt obligations and other derivatives.

And wasn't it the derivatives and the credit default swaps created by Wall Street that were the true culprits in the whole scheme that brought everything crashing down?

Your CFA should be helping you with income vs. expenses and your passive investments (401k, IRAs, stocks, etc) not how you derive your income.Good Luck,NavyDoc