It can be done but there is alot of competition. If you are simply looking for better returns you can do that by picking up inexpensive properties and renting them out. Its possible to buy properties around $100K that you can rent out for $1000/month. I beleive these low end properties have the best potential to reap appreciation down the line also. I think a 15% average annual return over the next 5 years between cash flow and appreciaton is not unreasonable with potentially more upside.