[Challenger]

The most important decision in buying investment property is the "purchase price" which includes all costs associated with the transaction. Often associated costs can add 5-10 to the actual cost of acquisition . The rate of return on the investment is then based on that total expenditure. Long term increases in house prices ( disregarding special circumstances) usually track generally with inflation. If you truly want to determine ROI, all expenses must be accounted for. The average "non professional" investor doesn't account for wear and tear costs. How old is the roof. If the house is new you may get 15 yrs with the roof. Cost of roof replacement $8000/15 = $500+ per year maint. reserve; Air conditioner, refrigerator , repaint inside/out , landscape maintenance--on and on. My guess is that most amateur's do not do well after considering time value of money, and the fact there are liquidity considerations with real estate. Just some issues to consider if RE investment is a new venture in retirement.