Best bet is to be conservative with your numbers and not to speculate on appreciation or increased future cash flows, although it is tempting.

Anybody who buys individual stocks without knowing their value is speculating or gambling.

I have a wonderful postcard circa @ 1920 that says "There are two times when a man should NOT SPECULATE---when he CAN'T afford it and when HE CAN"IMHO, if you feel like you are risking everything, you are risking too much.

I would just focus cashflow or the 1% rule or what ever metric you use, are more important than speculating on the value of properties in the next few years.With inflation continuing I cant think of a better spot for my cash than in leveraged real estate that produces income.  

And even then, I'd be speculating, not truly investing.

I don't like to bank on appreciation, because it's obviously speculative, but there aren't many options out there.

As long as the owner has the cash to put into the property on a monthly bases to carry any short fall cash flow is not necessary.That individual would be speculating on appreciation as opposed to depending on a monthly income.

Per instructions to Schedule E, this is where generally you place that real estate.Instructions to Schedule C indicate you CAN report real estate rentals on Schedule C for very specific reasons - first, if you are a "real estate professional" (of which I am not - read above, I still get a W-2 from my employer), second if you hold the properties for "speculative purposes" but the test is your rents must be 2% or less than the lowest of your basis in the property, or fair market value....I buy very low and I'm closer to 18-20% (the LLC owns the property outright with no financing...I don't plan to finance).Here's where it gets sticky...the LLC that owns the rental properties also owns a phone system, and various tools used to rehab/repair/maintain the properties - most of which are capitalized (table saw, miter saw, job site boxes, etc).  

But they were just mathematical speculations on the success of mortgage bonds as a whole.

I however will recommend to focus on cash flow rather than speculation on appreciation.