But, seems to me that no matter what the thread, if taxes play such a huge role then they should be mentioned regularly, regardless.

How much does appreciation play a role in this analysis?

I guess I am just looking for validation on the approach that I am currently taking in my buy and hold strategy.In 2009 I had $15,000 and 5 acres of paid off land (worth $15,000) to play with.

(YES it ended but politics have artificially kept it going)My advice, don't raid the toy box because eventually you will want to play.

@Rhonda Chesley Calling North Bend the "Eastside" is playing fast and loose with the term.

I've also played with numbers to see if certain properties were good investments.

My advice would be to start with 20 postcards a week ($9 a week is easily affordable) and work on handling the calls and creating good scripts and systems.

And, I don't see that as playing the system!

I started playing around with "Preferred Return" and relationship with "Projected Returns" and noted how sensitive the Projected Returns were to the Preferred Return.

Omar - don't forget the political aspects of real estate.In respect to development (or re-development), we can only imagine how the economics of a new tract built in a tough area may have played out.Politician needs to repay a favor to a supporter, who just happens to be a developer.Developer sees an opportunity to (maybe) change a negative economic trend in that community.Developer builds one less profitable project so that a much more profitable one can be approved in another community.Bank offers low, subsidized financing due to local or national programs that exist at the time.Just because it doesn't (or didn't) make sense, doesn't mean it was unprofitable.