Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

Raise your rents annually.  

My brother had access to the other $160K but ultimately purchased a 4-plex two months later using his own money instead.Currently, its written that if my brother doesn't use the funds then he gets 160k value from the estate extra, as I used my half already but then my dad suggested a 2% annual appreciation on that amount seems fair on the 160k for him, and now he believes it should match his home’s appreciation, which is roughly 5% per year.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

@Tyson Regier  I agree with Megan, and would add to her list Annual fees associated with each llc to keep current/registered with State.Annual Tax filings costs...

Have a Backup Plan: Annual Rental Numbers Matter•Always know the annual rental numbers in case you need to pivot to a long-term rental model.

Las Vegas's average annual population increases by 40,000 to 50,000 per year.

Why would you want to file a partnership return instead of reporting it as is where it is owned as tenants in common.If you file a partnership return and have someone else do it, you are likely looking at a $700 annual cost.Reporting it as tenants in common means you report your share of the rental on your individual return and your partner reports his share on his individual return.

Annual taxes are low.

Many thanks for the warm welcome I received at the Alabama Center for Real Estate Transformative Tuesday.