Is it possible to buy when "cash on cash" > 3% in California?

[Den S.]

hi,

I am thinking to become a RE investor. Reading this site (forum and articles) I see that people are talking about 10-15-20% for cash on cash :)

Honestly speaking maybe I calculate wrong or missing something. I understand that Bay Area is out of picture with crazy gap between house price and rent. But even looking around Irvine/San Diego I cannot find anything near these numbers.

It seems 3b SFH is about ~$780K (720-850) in these areas. Rent is about $3500. So, even if I buy "all cash" it is just 3% for cash on cash. If I take any mortgage... it goes negative :)

Does this mean that RE Investment is not real in major California markets?