Estimating future appreciation rate to calculate per year per property.

 I'm weird in that we don't and have never figured in appreciation into our modeling. We treat it as "gravy". After spending more than 15 years in lending, we started our company right before the last downturn in 2007-2008 expecting a backward slide in real estate prices. We purposely chose, unlike most operators, to leave property appreciation out of the modeling. I think it's a personal preference, but I've found that being conservative has always served us well. When property appreciates and we get a windfall...that's just a bonus. Good luck to you!