Typically you pursue one track or the other.

As in, would it sit for sale because it’s now “worth” 350k arv despite the ones around it in the same neighborhood being listed now at 250k, as an extreme example? 

For example, if they change jobs put the new employer info in your file.

For example, just driving around won't tell me if there's a new housing development or mall or manufacturing facility planned to start construction in the next year or two.

Think Florida or Hawaii, for example.

For example, if you paid $500k for both houses, and yours is 2000 sq ft while the rented one is 1000 sq ft, you could use a simple formula like $/sq ft.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Townhomes typically have an HOA, which can be pricey and eat cash flow.

Typically single family / small MF (2-4 units) will have higher appreciation.

Though, these investors typically fall short or overpay for properties because they are unfamiliar with the market and the shifts we have from block to block.