I've heard that most investors are happy with $100 per door after expenses. My CPA tells me that "In total, your cumulative profit from the properties is $23k, after depreciation" for the year. This is for 3 buildings, for a total of 8 doors. Am I dividing 23K by 12 months, by 8 doors to see what my monthly profit per door is?
I kept my calculation simple: Income - (PIMI + other expenses). --> Essentially look at pure cash flow and see if you are positive.
Depreciation --> Maybe from accounting perspective, but wouldn't it fold back when you sell the property?
Real estate appreciation --> Virtual money, realized only on sale of the property. So why look that long term? Let it come when it does. Also you may need 1031 exchange to avoid taxes which means you do not see the money if you go this route :)