Are buy & hold investors in NYC, SF, LA, etc at a disadvantage?

[Larry K.]

With the rent to price ratios so high are we at a disadvantage? This applies to 1to4 Fam and larger commercial deals, also with very low cap rates.  

There must be an upside. Any ideas?

[Aaron Mazzrillo]

I'd rather own a property in a market with high values than in a market with flat, stagnant or no appreciation. Yes, I like rental income, but I'm not in real estate to collect a small rent check. I want to be able to cash out my houses and collect 6 figure checks out of them. In California, if you bought anything in 2009, that is a reality right now.