Partnership returns are analyzed differently and the depreciation is added back in on the income. 

What are some good ways to analyze whether my area is a good market or a bad one.

@Jaysen Medhurst, numbers will look like this:$40K HELOC (assuming the current 3.75% doesn't wildly in 15 years)5 years @ $134/mo (draw)10 years @ $405/mo (repayment)$40K Cash-out Refi (does not factor in the closing costs, currently looking at my current mortgage bank and personal credit union bank)$331/month more than my current mortgage paymentI will be walking through the properties tomorrow to get an idea of maintenance/repair costs and other details, after that I will analyze the deal closer to see what kind of income I can divert to repaying the HELOC back sooner.  

I know these expenses are analyzed into the expenses prior to making offers BUT its only on a monthly basis and just starting out saving for these operating expenses, there are NOT enough funds saved yet.

Commercial properties are not known for vast amounts of unforced appreciation but can be lovely cash flow vehicles.The move from appreciation to cash flow is a classic use of the 1031 exchange. 

This may seem obvious, but it’s important to recognize that the vast majority of vacation rental markets are not in all-out panic mode.”

While I agree you can’t “rely” on appreciation and can not lock in some quantifiable return of it, if your strategy is wealth building over long haul as opposed to cash flow, you certainly can invest that way and get some “estimated” or proforma returns analyzed.

Dont quote me but vast majority is around $531K max entitlement (SFH) - places like Los Angeles, Seattle, etc. have a much higher cap.

@Alfredo Franco I second everything mentioned above but would also add to start analyzing deals.

Yes, at first it is information overload, but just keep learning and practice analyzing deals.