I've also played with numbers to see if certain properties were good investments.

And, I don't see that as playing the system!

I started playing around with "Preferred Return" and relationship with "Projected Returns" and noted how sensitive the Projected Returns were to the Preferred Return.

Omar - don't forget the political aspects of real estate.In respect to development (or re-development), we can only imagine how the economics of a new tract built in a tough area may have played out.Politician needs to repay a favor to a supporter, who just happens to be a developer.Developer sees an opportunity to (maybe) change a negative economic trend in that community.Developer builds one less profitable project so that a much more profitable one can be approved in another community.Bank offers low, subsidized financing due to local or national programs that exist at the time.Just because it doesn't (or didn't) make sense, doesn't mean it was unprofitable.

Appreciation in their market is so high that it literally turned average investors into very wealthy people.I am not sure if appreciation plays that big of a factor in Washington DC, however I do know that you may have to look outside of the area for cash flow.

I just started playing with the calculator on Podio thanks to your input!

(I have a pre-paid legal plan so that would not have cost me much but it would have taken some more time.)

Austin is an appreciation play but Columbus (can be) a cash flow town.

E.x. if you already own the land..a joint venture will likely be available.I highly recommend the urban land institute and a book called "real estate development work book and manual" by Howard Zuckerman as a place to get started.City and Counties do play but most often with some sort of tax incentive.  

Read his book, play his cashflow and stop right there!