The "experts" are predicting an eviction apocalypse.

Predicting future cap rates is an art and one of the driving forces behind syndication deals, funds, and new construction going on in this market.

Syndicators are probably more accurate with their return predictions because some of their investors have a ton of money and a team of attorneys to hold them accountable. 

He has all the current data and future predictions with graphs. 

It has a pretty predictable long term appreciation rate. 

It avoids predictable problems.

As a business person, these ratios help you to:A) Build a predictable business.B) Plan your finances.C) Determine which marketing methods are effective.D) Determine if what you're saying to the sellers are effective.Be honest!

But do keep in mind that even expert economists have difficulty predicting the future.

I predict they offer to settle with him for $3500.00.

In commercial property it can be an educated guess becuase the value is based on the cash flow.However the value of SFHs is much harder to predict because a homeowners desire to live in a particular area can drive the prices up well beyond what makes sense from a cash flow perspective.My point is that yes you can use IRR to ehlp calculate the total return from both cahs flow and appreciation but it is as much an academic expercise as it is a practical too for SFHs.