[quote=spdrun]It’s not much of a challenge to find 6+% cash-on-cash in the US, as long as you don’t let fripperies like paying some parasites 8% of your income for management fees or paying some incompetent to maintain what you can do yourself eat into your bottom line.
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Of course, yes, but the US is a big place and the OP was referring to the Bay Area, where the median house price is the highest in the US, which is always going make rentals a challenge.
The problem with the “cash-on-cash” ratio is it magnifies gains since it ignores the loan element of a property, which typically makes up most of the value of a home. Leveraged investments also magnify losses making them high risk. Whatever, I’m not convinced that is the best way to analyze an RE investment.
IMHO you are a bigger idiot for not sitting down with a spread sheet, than you are for using a property manager or tradesmen.
