This made sense historically, but as the residential real estate industry has evolved would six months of inventory really feel balanced or a neutral market?

Hi BP Family,I’m Vince from British Columbia looking to build my network in the East Coast.

Unfortunately, 25% down will limit the return then2) 1.04% annual appreciation 3) 1.02% rental rate increase4) 1.02% expense increase (property tax, maintenance, insurance, vacancy)In one bay area city I am looking at, these are the numbers I am seeing:Property cost:  $1.1MDown:  25% = $275K + $16K closing = $292K investment30 year fixed rate @ 4.5% per month costs :  $3K interest, $1K principle,  $1.8K other (insurance ($500/yr), HOA($250/month), maintenance ($1000/yr), vacancy ($2400/yr) = $6k per month in costsrent:  ~$4.8KBased on the above numbers and expected appreciation/rental increase/cost increase, after 10  years, this is the return if you sell the place, pay off the loan: Total Return 584840.5236 % Return 2.008036133 Annualized Return 7.2203332% After 15 year: Total Return 1041521.509 % Return 3.576039515 Annualized Return 8.8663061% After 30 years: Yearly Appreciation 1.04138 Total Return 3326151.581 % Return 11.42026294 Annualized Return 8.4565711% As you can see, unless you can get more than $4800 rent today, or leverage up, or get a better price, real estate is not returning any more than the historical average of the S&P 500.  

Historically S&P 500 has returned close to 10% over its life. 

California far outpaced inflation numbers (CA real estate is a great hedge against inflation, historically).Median Price change: Positive1981-1982 recession: Related to the 1980 recession, the recession of 1981-1982 was considered the main course after a 1980 appetizer.

Going to call the gas company and see historical usage.

@Abraham Shamosh You have a historically low interest rate on your investment property. 

I say buy multiple multi family properties in solid areas with other people's money to scale your business.We are in a period of historically low interest ratesInventory is low, but if you find a deal, lock it up using other people's moneyCash flow is king and multi family properties will allow you to continue making money from one unit while the others are either being renovated or rerented.Just one girl's opinion.Stephanie 

San Diego has historically been a great RE market for long term return, but it was getting more challenging before the rate increases and the rate increases have added to the challenges.  

It's visitor demographics are completely different from the visitors to the British Virgin Islands only a few miles away.