Beginner with $200k

[Dan D.]

So, I do not own RE but want to use my savings of around $200k which is currently sitting in the bank and losing value, to buy some properties to get some decent cash flow.

My friend has been buying SFH's in North Carolina for the past 2 years. He does the taxes (he's a CPA) of the agent/management company that sends him the deals.

Monthly statements and review of his taxes show around 12-13% cap rates.  These props are bought 35-40k cash, then rented out for around $750-$800/mo.

My friend and I live in CA; so, using this person(s) in NC is my 1st "out of state" investing choice due to track record and trust. Living in So Cal makes it very difficult to find decent ROI.

Any suggestions for a newbie starting out?  Are the above cap rates sufficient?  Input appreciate.