May not appreciate fast enough

Given the high (!!!) property tax rate home value has been depressed.  It probably won't go up fast in the near future.  Therefore your focus is on cash floww.  $2,000/year return on a $16,000 house is 12.5% which is great.  If you can handle the trouble of finding tenants, repairs and evictions then this is a great cash flow investment.  Not a good on for apprecation.