HI . Assume that the investor believes that she can not initially charge more than $ Tad rent per month on the property . What annual rate of increase in the rent charges Will be NECESSARY' to BEDICTATE the required 1 4%'6 rate of return ! the current projected annual rate of increase is 2961} Necessary annual increase* . Assume that neither the rent nar the annual increase will be changed . Instead , the investor Isk's what annual rate of appreciation in value of the property would be necessary to GENERATE a 14%' expected rate of return ( the current expected rate of appreciation is 3:4 61 . Mecessary annual Increase*