Now add 3-5% annually to the income line.  

If it CF's (post mortgage pmt of course) at 10% that is about a 7.2% annual cash on cash return.

I created a 10-year road map that broke down a long-term vision into annual increments.

Below are some of his recommended reports and a few of them not only present data from recent history, but also provide a forecast for the near future:Marcus & Millichap’s Annual US Multifamily investment ForecastCBRE Biannual Cap Rate SurveyIntegraRealty Resources Annual Viewpoint Commercial Real Estate Trends ReportZillow Annual Consumer House Trends ReportRCLCO Quarterly State of Real Estate MarketPwC Annual Emerging Trends in Real Estate

Pay the $200 or $300 annual fee for the REIA.

I'd have to feel very confident that I could do a certain amount of volume annually before ever considering making the switch to full time.

@Scott Wolf thanks for your input as well.

Although immediate replacement may not appear necessary at this time, we recommend maintenance be performed on a regular basis with annual inspection by a qualified roofing contractor.

Keep in mind the land value needs to be removed for calculating your new annual depreciation amount.Also, if the property inherited has multiple owners, owned by a trust with multiple beneficiaries, etc.. then the depreciation calculation and step up percentage may change and will need further review by a professional.   

In fact, I'm a neighbor, living in Laguna Woods, near you.Let’s look a little closer at those options:Option #1 Pay $100,00 cash to purchase a house in-fullMonthly rent: $800Monthly cashflow:  $300 (after expenses and an allowance for vacancies, misc*)Annual profit: $3,600Home value after one year (4% increase): $104,000Advantages Don’t have mortgage payments100% equity to borrow against if neededHigh monthly incomeCan deduct depreciation on taxesOnly one tenant to deal withIf you lose your tenant, you don’t have to worry about covering a mortgage each monthDisadvantages Can’t deduct mortgage interestNot enough cash flow to save for bigger emergenciesIf you lose your tenant you will have 100% vacancyCannot force appreciation.