Depends on what happens to the properties, as it has been said earlier, supply and demand.Becuase of this mortgage mess , in my area, rents have gone up a little.More people want rentals with a little increase in supply which means increase in rents.

State law restricts increases to 2% of the property value per year for "inflation adjustment".

Once my reserves have increased I will branch into other acquisition strategies.Thanks for everyone's warm welcome!

Therefore how do we show the increase of the monthly rent without looking like we are a property management company?

Another thing I find interesting that seems to be missed here....When Joe the Plumber's taxes are increased - who do you think is going to see decreased profit in his "flipping" business when rehab costs increase?

When you factor in time - and that your mortgage payment remains static whereas rents increase - the balance swings even further towards ownership.So my question is: why do tenants pay such high yields rather than buy the property themselves?

Since affordability is increasingly becoming a critical issue, I want to be able to pass on the savings to homeowners.

The increase in cash flow will come back after the next the acquistion by adding it to my current holdings.

How do you know that prices will increase mid 2009?

You may have an increased rent upside, but watch out, as that could lead into a higher vacancy factor.Can you reduce any of the expenses by negotiating better rates with service providers or can you improve or force the appreciation through capital improvements?