Hi John,To give you an idea I have 7 clients from California right now doing 1031's into commercial property in other states.California has great equity growth through appreciation speculation but like you I believe that last for only so long.

The barriers to entry in real estate are pretty high so reckless speculation is much less common than it is in penny stocks and crpyto.

But this is all speculation / generalization at this point. 

Would YOU lend a kid with no job, and no diploma 100k to speculate on a fix and flip? 

Then, the question becomes is expecting the long term historical average appreciation rates over the last 40+ years (no more, no less) averaged out over a long holding period make you a speculator?

Another reason IMO the whole "I'm not going to factor in appreciation rates because that is speculating" business is nonsensical to me ... because they can be negative too and ignoring it in these types of markets can get you into trouble ... whether the appreciation rates are negative, zero, or positive, they will have a profoundly important impact on your business model and exit strategies over the long term, whether you like it or not and whether you admit it or not. 

Of course, this is mere speculation...

Haha, speaking of speculation! 

For me, that is when there is a lot of speculation in the RE market without underlying value and healthy market conditions.

Just speculating.