Saying it predicts profitability is like saying a $100 per sf property is more profitable than a $1,000 per sf property.Cap rates are not on leveraged properties.

And I like the idea of diversifying - technology changes significantly every 2 years, whereas real estate seems like a much more stable and predictable sector.Curious if any of you guys have any thoughts on this?

However, this particular unit was built in 1900 so I set aside more dollars each month than I normally would because of the age related repairs I predict I will need to make.

I would like to help her out but rental market value is only $1300 and there is no equity but there is a potential/predicted increase in value of 8%.

And hey, they are predicting a mild winter this year anyway :)

Tenant build-out cost.Lastly, you really should be looking a deal over a 3 - 5 year period of time and not only the cap rate which is just a snapshot in time and predicts one year ROI. 

However none of us can predict the future.  

I'd say that's a pretty spot on prediction for the years to come.

I have lived in the Denver Metro area most of my life but I couldn't predict a water bill for any of the dozen or more places I have lived in here.

On the two properties that were negative cash flow last year, do you predict those to turn around in 2016?