Appreciation Characteristics in Midwest

[Jason Cobb]

Hello,

Currently evaluating several offerings in East Central Illinois.  Current offerings calculate out to a little over 3% appreciation per year since 1999.  Each have 2 and 3 bedroom mix, near universities, C+ (ish) type properties competing against large scale, A+ type properties, reduced enrollment, possible saturation, etc.  

Its a 29 Unit Multi-family in two buildings, 5/24 adjacent to one another with price of $870,000.  

I own a 12 Unit ($305,000) and currently looking to finance a 14 Unit (rehabbed, more sq ft/unit) at $485,000 (with office/bath, and coin op laundry room).

The 3% appreciated offering seems a bit high for the area and I have been using 2% (max) for my own and the 14 Unit.  

Am I wrong to use 2 percent?  Is 3% justified?  

Any insight beyond my own limited scope would be enlightening.  

Thanks BPers!