Why not invest in depreciating markets?

[Abed Asghar]

I have a question that maybe some of you more seasoned buy and hold investors might be able to answer. A lot of the forums/webinars talk about a minimum 12% cash on cash return on rental property investments, but for someone just starting out and living in Southern California, a 20% down on a half a million dollar “deal” isn’t easy to come by, it seems the numbers never add up. But then I look at 3 bedroom single family homes in cities like Detroit MI and Cleveland OH going for $10,000 or less, bringing in a monthly rent of $750 at minimum, why aren’t all buy and hold investors looking for cash flow buy up in these areas? Is there a reason why these properties aren’t moving? Buying a $10,000 property in these slow appreciating markets outright and renting it out for $750 while living and working in Southenr California seems like a killer return to me, but am I missing something? Thanks for the insight BP peeps!