House price to rent ratio

[Lukas Holzmann]

Hi guys,

I was wondering why some markets are more ideal for real estate investors and some not so much. 

For instance: I was listening to the bigger pockets podcast number 13 and leon yang was talking about vegas being a good market, because houses are cheap and they rent out for a good amount. In Contrast I think he mentioned San Francisco as being a bad market, because houses are expensive and renting them out would not be worth it. 

My question is, why is the ratio between price of the house to renting it out better in some markets and worse in others?