Posted by Jimmy on September 14, 2002 at 18:22:30:
How does 2000 miles away sound?
I live near San Francisco, where I would be lucky to have my gross annual rents from a SFR or duplex be 7-8% of my purchase price. In these parts, all of the action is on the back-end. But I am a cash flow junkie.
So my properties are in East Texas. Gross annual rents are more like 14-16% for SFR’s and 16-18% for duplexes, and 20%+ for 4-plexes.
The manager is a necessary part of the deal.