Hint: short term market appreciation is very hard to predict but long term historical averages can give you a good idea about long term market appreciation (over 10+ year hold periods), and it can be negative after inflation even in the long term so never ignore it even if you are in it primarily for cash flow.Tax savings.

In order of risk adjusted returns, it is IMO, back tested with historical data and lots of experience:Hands-on local REI (which can include your primary residence, a great place to start)S&P500 & REITs (if you want passive REI exposure)High quality out of state REI (higher price, lower rent-to-price ratios)Low quality out-of-state REI (lower price, higher rent-to-price ratios)3&4 are HIGHLY dependent of the quality of management in place, a vast majority of PMs suck, and you as a newbie will not necessarily be able to pick out that good PM ... a good PM is a needle in a hay stack thousands of miles away when you don't yet know what a needle looks like nor what a hay stack looks like either (no offense intended, but I think it's the truth).

Also, I agree with you that the most likely scenario is a flattening of prices and rents in the short term, or maybe even a very slight dip, but in the long run the historical record speaks for itself and I don't see those long term pricing trends changing in the future.The in-law cottage is interesting ...

Then I noticed on Zillow how many properties are up for rent, so I then check the historic population.

Alexander Parada Interest rates are historically low so most (well, maybe just me) like locking in "cheap money" for 30 years.

The historical data would indicate that this is an aberration and to bet on it continuing is a hell of a gamble.

Supply is currently at historic lows, and as a result demand is high along with prices.  

Hello everyone,I am looking to do a flip within Old Southwest in Roanoke, but I am not familiar with all the regulations and guidelines that go along with renovating historic buildings.

However, even if I assume that the cash on cash return is reinvested at some rate (say the interest rate for the mortgage or the historical return of the S&P 500) the rate of return diminishes over time, eventually reaching whatever the reinvestment rate is.  

This I find incompetent and inexcusable.The rental condos has historic designation, and as a result roof replacement was a one million dollar plus project.