If he outperforms, you get none of the upside.You seem to be very knowledgeable about the subject. 

Our local long-term rental investment properties out-perform our FL short term rental right now, but the income we do get from it does help to offset the costs when we want to use it personally.

They pitched it to outperform loopnet and take over the commercial listings market.

All cash:Purchase Price: 100kGross Rent: 1,200/mo = 14400/yearExpenses = 7200/year (50% rule)Cash Flow = 7200/year Return on Investment: 7.2%Financed:Purchase Price: 100kCash down: 25kAmount Financed: 75k 30 years @ 4.5%Gross Rent: 1,200/mo = 14400/yearExpenses = 7200/yearNet Operating Income = 7200/yearDebt Service = 507/month = 6084/yearCash Flow = 1116/yearCash on Cash Return= 4.46%Mortgage Paydown (1st year) = 1613Total Return (1st year) = 2729Return on Investment = 10.9%So in this case, you have to consider the mortgage paydown before the leveraged property outperforms the all cash property.

I have a duplex that could out perform other central KY four-plexes that I have looked at before in the past. 

Abandon properties and housing violations lists have always out performed absentee owners for me.  

This chart is only covering 1 aspect of due diligence and is meant to highlight neighborhoods that are outperforming the market by the numbers (numbers dont lie) and is meant to be a reference for anyone interested in those areas.To your stock reference- performance in a property is often dictated by location and the surrounding conditions just as a stock is dictated by its surrounding conditions.

Apartment owners here over the decades have outperformed and will continue to outperform.

I like to use a 1% rule because anything that can earn 1% will out-perform the average rental.

Though coming off a comparatively small base, Texas has also outperformed the rest of the country in its growth of high-paying jobs.That’s potentially a very big deal.