Property appreciation is compounded monthly (not yearly). This will give you a slightly higher total than yearly compounding. It is advisable to estimate conservatively.
According to the Hartford Board of Realtors, housing prices appreciated in Hartford County 13.2% from Feb 2004 - Feb 2005. Multi family and apartment buildings appreciated even more. Will this pace of appreciation continue? Probably not. We look for a more modest rate of appreciation of between 6 - 9% per year.
Where else can you get 1). A positive cash flow return on your investment (if rental multi unit property) 2). Lenders willing to finance most of your investment enabling you to leverage your assets and returns. 3). Someone else (tenants) to pay down your debt balance, therefore increasing your net assets (if rental property). 4). Asset appreciation based upon the total value of your asset, not just your out of pocket expense. 5). Liberal tax deduction benefits. 6). The ability and option of taking profits tax free through refinancing equity, exchanges, and other strategies. 7). A place to live that you can call your own (if owner occupied) ?