SwampYankee,
Our properties are in a middle class, small town. The properties have modestly increased in value, but this is not San Diego or Fort Lauderdale. Real estate values just keep plugging away at around 2-4% increase annually, although in the last year I believe that the soft market even hit here and consequently the values may have decreased slightly. Right now, I am probably not a good person to ask about rental properties and their value.
As I stated before, I think that the person best-suited for landlording is a parental type who is ready to adopt a family or families, who cannot think for themselves, who have no concept of finances, and who live month to month or even day to day. I have discovered my inner self by owning these rentals, ie. I am way too anal retentive to do it and that a sense of responsibility is not shared by a lot of other fellow humans. Whew! I hope my rant helped you, it certainly helped me.
Tom