2-4 units overpriced everywhere?

[Kelly Pierce]

I am a realtor in CA and I've spoken with realtors in Ohio, Florida, Texas, Tennessee and I've had no luck seeing a difference in return on investment or cash flow on properties. I can get around .62% on SF here and thought for sure after all I've heard about these markets that it would be totally possible to get between the 0.70-1.00% on SF and close to that on a duplex or even have decent cash flow on 2-4 but from what I'm seeing that is not the case anywhere. What am I missing - is it only those who have the large & expensive mailer systems in place who find anything worth buying anymore - and for that you'd need to live in the area? I have two rentals here and might as well continue to invest in CA if there is nothing better to be had elsewhere. Feeling super late to the party and frustrated. Would love feedback and advice or direction.

[Ryan Evans]

@Kelly Pierce my go-to realtor got too busy so I got licensed to take over all the buyers for their team and to represent a bunch of my out of state contacts who are buying out here. I'd be happy to chat a bit and help steer you in the right direction, but it really takes a trip out here to get a feel for the market. You shouldn't buy without vising the area you decide on, and I dont' generally work with investors who haven't been to Cleveland since as @Brandon Sturgill said, only a small fraction of people actually buy. But the ones who do are repeat customers! 

@Ryan Mainwaring yep. Right now I've got a buddy from Seattle under contract on a duplex for 70k. All the mechanicals, bathrooms, and roof have been updated in the last few years. It just needs about 5k when one of the tenants turn. Here's how the numbers look. Rents are somewhat conservative. 

All in =$80k give or take with closing costs/minor rehab.

Rent - $1,300 ($650/side) 

Mortgage - $270

Tax - $140

Insurance -$65

Utilities - $150

Maintenance - $100

CapEx - $100

PM - $130

Vacancy @ 5% - $65

Net Cashflow - $280. 

You've really got to know what to look for to get these numbers. It's easy to get into a property with tons of deferred maintenance that will kill the deal over time.