Real Estate along the coasts; is there investing value??

[Brendan Blake]

Hello,

New to the site, but not new to investing in the equity and FI markets. Was curious as to how you seasoned Real Estate investors analyze potential opportunities in the crowded coastal area (LA/SF/BOS/NY) where even the 1% rule is almost non-existent. While physical real estate for rental income purposes offers less correlation with the broader equity markets than REITS, at what point do the yields that REITS offer become more attractive financially than the physical direct investment?