@Walt B Philip I do not see inflation as a driver, particularly if employment trends hold.

Heck, my daily driver is a 1990 Chevy truck that I bought in 1994 and I'm teased mercilessly about it. 

If you or the other driver moved your car four feet in one direction, you would collide. 

Property Value: $600KInitial Down Payment: $150KLoan Amount: $450K Year 1 Appreciation (5%): $30K Year 1 Cash Flow (5%): $7,500 Year 1 return (cash flow & appreciation): 25% (20% from leveraged appreciation & 5% from cash flow).As you can see, leveraged appreciation is a key driver to build wealth in CA because of the high and steady rate of appreciation.    

@Dawn AnastasiYes I have the person's contact info, copy of his driver's license and his LLC article of incorporation docs, and signed contracts.  

I'd be interested in seeing how this deal turned out in 24 months.Getting legal advice from BP, is like getting stock market tips from your cab driver..both usually won’t end well. 

AFTER I bought it a driver ran his car into the house, literally, the car was inside the first floor of the house. 

It does not capture life changes, which is by far the bigger driver.

If I take the same $5,000 and invest it in my Berwyn, IL properties, I can drive rents $300 per month (and I did).

Market sentiment is the main driver from what I see and hear.