Purchase price vs rent generated

[Kellen Driscoll]

Hello BP, I have a question that I'm sure a lot of new investors are curious about. On a few podcasts that I've listened too, I hear people buying duplexes around and sometimes under 50k total for purchase and rehab and renting them for $800-$1000 or so a month. This is in states like Washington and Wisconsin and probably more that I haven't looked into. I live in Massachusetts and if I search in areas like New Bedford and Fall River which are higher drug/crime areas I see properties that are cheap at 100k maybe 80k and need an additional 50k to fix up putting me at 130-150k total, which rent could typically be around $1100-1200 a month. Is it just me or is the correlation between purchase + rehab price vs the rent generated in different states very un-proportional??? Even more so the higher the price goes, if I want to buy a duplex on cape cod it's going to run me around 300k and I might make $2800-$3000 a month. I could buy 6 of those 50k houses and make $4800-$6000 for 300k. Is there something I am missing here? Best, Kellen