If you want to make some assumptions about the long term future state, and you plan on holding a LONG time (10+ years), then I suggest you look at historical pricing and rents to determine average appreciation rates over the last 10, 20, 30 years which would cover several boom/bust cycles.

I am Alex Cole, I stumbled across the bigger pockets podcast in search for some financial education in my life, and have been hooked since.

I have some past experience with real estate, and I've bought and sold one condo, and I'm in the process of selling my small business.Most days, I work as an analyst in the construction rental industry, but I'd like to one day leave the corporate life and have various income-producing investments.If you are in the Los Angeles area and have good experience, I'd love to meet up for a cup of coffee.

Whatever path is your choice, some mathematically more sense and other more life sense.

I am to the point in my life where I have began buying, selling and renting real-estate.

Since the home was vacant and since the bank purchased it from the County Sheriff, the new owner who decides to renovate it is responsible for this bill.I've never heard of this fee in my life and neither did my plumber or my attorney who I called right after speaking to the agency.

@Devon Garbus it appears that your clients may have been taught how to calculate costs, but what about market cycles?

Whether it is really does not matter it is just a fact of life that you have to deal with.

Luckily, I live a frugal life and am able to save close to 60% of my income.

Additionally, it is one of few systems that run 24 hours so it is also a fantastic option for enjoying Philadelphia restaurants and night life.