But I will speculate a bit.If you sell an asset whether it's real property or a corporation you pay capital gains on the difference of sales price + costs - purchase price plus cost - accumulated depreciation. 

I remember quite a while back the two of us and others were speculating what the fall-out might be.

Some markets appear to be over heated:Home-Flippers Reliance On Leverage Rises To Highest Level In 9 Years Jun 8, 2017 11:15 PM“Home flippers financed an estimated $3.5 billion in purchases for homes flipped during the quarter, up from $3.3 billion in the previous quarter and up from $2.4 billion a year ago to the highest level since the fourth quarter of 2007 — a more than nine-year high.”The explosion in home valuations in urban markets like Brooklyn, Washington D.C. and San Francisco has inspired real-estate speculators to search for the next big score, with the highest percentage of home flips completed with the aid of outside financing occurring in Colorado Springs, Colorado (69.3 percent); Denver, Colorado (54.8 percent); Seattle, Washington (51.6 percent); Boston, Massachusetts (51.3 percent); and Providence, Rhode Island (47.3 percent).Matthew Gardner, chief economist at Windermere Real Estate noted that escalating home prices in Seattle forced flippers to rely on financing their purchases.

I can definitely suggest not to speculate on just appreciation.

Speculation of the market?

I have purchased a new home that I lived in on speculation in 2005ish as prices were skyrocketing but it was an appreciation play not long term hold.All the best

He refused, saying real estate is speculation, and after all, I was a 22 year old kid, and what would I know.Then by 1982, these properties went for $250K.

However, if you are one of those investors who wants to bank or speculate on appreciation over the next 10-20 years, historically you'll probably make money.If you choose to buy in CA NOW, just know you are buying in a seller's market and specifically a Seller Cycle II market (top of market and reaching peak).

.), and your DP is minimal...then yeah--200-300 cashflow might be OK (but, you'll need to run your CoC numbers to know for sure).But if the property is C or D class, in a C or D neighborhood, and the tenants will cause you endless headaches, and the property requires rehab and/or has looming capex, etc....then, no, $200-300 may not be worth the hassle.There are properties that I know would cashflow THOUSANDS per month, but I wouldn't touch them with a ten foot pole because I know that the headaches the property and tenants would produce just aren't worth the money...Also, you mentioned that you think higher rents and appreciation are in the future for this neighborhood...if your plan DEPENDS on higher rents/appreciation in the future, you're not investing, you're speculating.

Sounds awesome, but investing for inflation alone is the kind of speculation that got us into the housing bubble.