You can dream all you want about how you will be able to improve the property once you own it, but when negotiating you need to let them know you are buying on facts not speculation.

If its negative, you need to be sure you can cover that shortage, which often comes in big lumps.There is also a speculation play with real estate.  

One is a bank owned property in Florida - 3 bed, 2 bath - where we're able to get into it for about $140k and we're doing a little speculation that it'll go up by about $50k in 3-5 years and we should be able to get $200+ in cash flow.  

Working in the real estate business and investing or speculating are very different.

While that's not fantastic by any means, it's just the dividend yield; there's also potential capital appreciation (which, many on here would probably say is the same as speculation on appreciation of real property).3.)

Speculation looks like this will continue to increase.

So they're some speculation out there regarding holding off on investments until the outcome of the upcoming elections.

Appreciation is speculative, but cash flow you can estimate fairly precisely by looking at current rental rates. 

I do aggressive land speculation in affordable housing.

In addition, when I close with 50% equity, I don't have to speculate on future appreciation (I've already got a bunch of equity at closing).