Besides, appreciation is gambling, and it is also long term, so it doesn't effect your current financial analysis.  

Amortized over 30 yrsIncome:Total Gross Monthly Rent: 2,845 (if both units are rented/1,500 if owner occupies top unit and rents out bottom)  Seller thinks 2,945/month for bothFixed Landlord-Paid Expenses:Electric & Propane: 360/month (seller currently has them on one bill so I put 360 into the 'electricity' field)Water & Sewer: 65/monthTrash: tenant pays for their own trash service / owner occupier when living on first floor unit hauled his own trash to dumpInsurance: 90/monthProperty taxes: 550/monthVariable Landlord-Paid expenses: (A bit of a gamble: I put in low percentages here in efforts to make this look like a better deal, rather than being more conservative with higher/safer percentages, so I’m curious your take on this:Vacancy: 3% (88$/month) -I don't think it'll be difficult to rentRepairs and Maintenance: 3% (88$/mo) -It's freshly rehabbed...though yes, I know there will be unseen repairsCapEx: 3% (88$/mo) -It's freshly rehabbedManagement fees: 3% (88/mo and I would be the manager)Future Assumptions:Annual income growth: 2% Annual PV Growth: 2%Annual Expenses Growth: 2%Sales Expenses: 9%Are there any other expenses I'm not seeing, i.e: inspection/appraisal (or does the seller pay those) etc?  

It's less of a gamble than just buying a parcel and hoping someone will want it one day.Clint

Somewhat of a gamble...2.

I love theme parks and snowboarding is a thrill!

It feels a bit unpredictable, a bit like gambling. 

These will all be walking distance from the property.My hope would be that the chance for appreciation would be enough to make the lower numbers make sense, especially seeing how property values have risen in the surrounding neighborhoods where the walking path is already completed.My question is, is it worth the gamble to solely rely on future appreciation to make the deal make sense?

We are thrilled to have found the BiggerPockets community and the enormous amount of great information that is available about real estate investing!  

Those mortgages are packaged up and gambled against on Wall Street, where our mutual funds from our retirement accounts are making their money. 

I sold it at auction for $40k and I was thrilled to get $40k for it.