• Investing in High-Cost Markets: The Bay Area is an expensive market, but we’re open to exploring out-of-state opportunities if they provide better returns.

I'd hate to add more expense to this whole deal.  

For a 2 bedroom my projected ongoing is around 13-15k (not counting the rent) at the end of the year because this is my first Airbnb Arbitrage I have and will make mistakes expense wise, the start up costs also is not factored because furnishing and starting everything from scratch obviously will skew the ongoing expenses which would add another 5-8k but I played it smart and have most of the funding charged to buisness credit cards with 0% APR for 12-18 months such that I save money and can take the year in paying back also with sign on bonuses which will save me up to 1.2k or more.If and when I hit my conservative projections my profit should be around 16,300-22000 by the end of the year this is after rent, expenses, cleaning fees and so on. 

He is securing expensive debt, not debt through a bank, isn't putting any capital into the deal and structuring the equity investment in a highly risky manner without any upside offered to the investor.

The big downside of these established markets is that they tend to be expensive and hard to make cash flow.

I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Sources of investment propertys and yhield based upon a buy and hold strategy,I hope you can help me.Wow,Its been a while since I have been back home haha2+ years now lolIts too expensive IMO and many folks are buying high and hoping to sell higher.Hoping a property will go up in value is not a strategy.

We see a lot of success in the suburbs:Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

Deferred capital expense looming? 

San Diego’s average house hold income is about what you stated, but the median is a surprisingly low (considering US news and world report lists it as the most expensive US city) ~$100k.