What is the point of investing in real estate NOW?

[Diane G.]

When I bought into San Francisco 10 years ago, after 20% down, I was still losing $1K ish per month per door.... I had to work my day job and saved every penny to support my real estate enthusiam..... 

But I had hope at the time.... I knew I would refi my rate from 8% (at close) to hopefully 6% later on... I knew the price would appreciate, I knew rent would go up slowly....And surely, all of the above happened....

Now, I recently ran the numbers on numerous potential deals, from Bay Area to TX to Phoenix to Tahoe to Sonoma County, from SFH to dupex to fourplex to 8 units... Nothing generates more than 4-5% return, and after debt service, I got left with almost nothing....AND, there is nothing to look forward to today, rates are not going any lower, rents are not going significantly higher any time soon, and value are not going much higher either...If you can't make money in today's market, you cant make money ever....

So why work your butt off to make "$150 a door" kind of return? You can still flip and make money, but then you are taking on RE as a full time job.... For those of us with a day job and want to go passive, is there a point in investing in RE now?

[Account Closed]

These aren't A tenants or A locations so you might not be interested or capable. These aren't slums or Section 8.

Last 4plex purchased, in Sept 2016
Purchase price: $480,000
Down payment: $144,000, 3.99% 30 year fixed
Rehab: $70,000
Total cash: $230,000 (including closing costs and reserves)
Total rent: $7,100
All in monthly payment (PITI, util, maintenance, capex): under $3,000
Monthly cash flow: $4,000 or more
Yearly cash flow: $48,000, or 21% COC

You won't find a deal with rent advertised at $7,000/month on MLS. You need to do work and find them. Most people are too lazy to do so. I work a full time job, manage 19
units, run 2 small businesses, and have a 1 year old daughter.

There is time, you just gotta find it. Less Real Housewives of Orange County, more hustlin.