How do I bridge the gap on rental yield

[Sachin Acharya]

Dear Experts

To give you a background and context, I am based in Dubai and want to buy rental properties here. I am currently at the education phase, which means, I haven't bought my first one yet. I have created a rental cashflow analysis tool to work my numbers out.

Upon running the numbers I have come across 2 hurdles that I want your help in to crossing. 

1. Gap in rental yield

The average annual rental yield in Dubai is 7.2% and that in the area and type of property I am focusing on is between 9% to 10%. Based on my calculations, for me to able to make a mere 5% cash-on-cash return, I need 19% to 20%.

Now that's a huge gap. Either I have to offer 55% to 60% of the price the properties are listed for, in which case I will not be taken seriously and will soon be put an ignore list by the market, or I buy the property and demand an out-of-market rent, which is not possible to get.

Please help me on how I can bridge this gap.

2. No cash

The second issue I have is I don't have the cash for a down payment. If I use a secondary loan using various financing options discussed at Bigger Pockets, I am looking at a negative cash flow for at least 4 years.

I don't want to give saying this stuff doesn't work in Dubai. I want to figure how to make it happen. Please help me with that.

Thanks

Sachin Acharya