Isn't that negative or neutral leverage at best? 

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

Still, I think you'd find it difficult to find one that would be a good long-term investment unless you had another ~20-30 years to go, it's at least cash neutral, and you don't plan to hold it too long (to avoid too much investment loss and before you get to the point where it's unsellable because of too few years left); that's another way of saying that maybe it suits your cash needs in the near-term or is at least less of a pill to swallow than other options until you find something that's more of a sensible long-term play

.- Space Coast Beaches - Condos - Buyer's market- Space Coast Beaches - SFHs - Neutral market- Viera / Suntree < $800k - SFHs - Seller's marketI thought this was interesting how drastic the difference can be within the same geographic area. 

Here's what I did:Kitchens: Painted cabinets, updated hardware, added efficient appliances.Bathrooms: Installed modern fixtures, used neutral paint.Exterior: Applied fresh paint, improved siding, enhanced landscaping.Results: Property value rose by 100%What budget-friendly strategies have you used?

Refinished hardwood floors, updated fixtures, and applied neutral paint colors.           

Just make sure the other two assets can still cash flow with the debt you put on them.I have an 10 unit commercial property that is basically cash flow neutral because of large Capex expenses that come up every year.

Neutral paints, accent walls.

How many neutral letters are you sending?

Large down payments or extreme discounts from sellers would be needed to reach cash flow neutral stages.