. ** We ask for T24/T36** Income: 1) Rent growth - flat for next 3 yrs and inflation for next 3 yrs 2) Any other misc income increase by 2% aka inflation Operating expense (Big ticket items - Lets assumes its a C property)1) Tax - 85% of purchase price and then 3% - Texas is a non disclosure state 2) Insurance (General Liability and/or flood) (example: Flood insurance in Alvin area is ~20K for 40 Unit complex on top of general liability) 3) Make ready (assume 10 units per year based on 90 unit )~10% vacancy 4) Run and Maintain - based on how much capex you will be spending 5) Management fee (6% for your size) may be a bit lower but for now keep it a bit higher 6) Utilities 7) Professional service (attorney/CPA/Lawn/etc etc) 8) Marketing fee Capex:1) Whatever you think is needed (Check roof, water/sewer line/heating aka boiler/HVAC system/Foundation)

If you have a 30yr fixed mortgage, your biggest expense is fixed and protected against inflation. 

And although DOM has staggered upward during the same period it is at a much slower pace and less dramatic than the rise in number of sales.

The question is, do I add these additional amounts of investment that are from my pocket not my tenants in as part of the "Beginning Investment" number so that I'm not inflating my ROI or do I count it as Ending Investment because I could have just put that same money in the stock market or elsewhere instead of the rental if I didn't have it and it's still investment? 

We have historically low inventory with increasingly rising prices.

Be careful with rising the rent more than it is allowed within you state regulations, if that applies.  

There are other parts of the city that are on the rise that may be more interesting to someone looking for a value-add.

Converted the apartment to a full time rental property, up till now, where I just got this feeling that it's likely better to sell and re-invest elsewhere than to keep it as maintenance costs are starting to rise, and the complex's neighbors are starting to degrade.As a result, I think I'm about to get thrown into the deep end of having to do a 1031 transfer as a first play into doing RE investment, so there's some sense of urgency as well, which is not comfortable.I'm by no means a pro, and by day I'm a full time manager at a startup, running technical sales.

Here in Louisville, KY the market is booming and houses are going for inflated amounts and quickly due to the low interest rates and high demand.

For one model of a $500k purchase of 5% appreciation and 3% rent rise I end up with a $-125k downpayment, followed by $2600 in field 1, incrementing up to $7600 in field 180.