I hope my pro forma is conservative (so far they have all out performed the pro forma but 2012 to 2022 was an incredible decade for RE investors).  

Everything invested in high growth markets, regardless of the vehicle, will dramatically outperform and have much lower downside risk than anything invested in Michigan. 

That can really give us confidence that home is outperforming the market, or help us see whether some additional theming etc. would help the home perform even better. 

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.

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.

This deal finished ahead of schedule and out performed our financial projections in terms of monthly rent amount and value, which we believe is partially due to our conservative underwriting but also in part to the current market conditions (gotta give credit where credit is due!)

q=speculation+definiti...There is firm evidence that Bay Area real estate out performs most markets. 

Historically the return on financed San Diego buy n hold via appreciation (rent and price appreciation) has far out performed better cash flow locales.  

Last year, real estate values were up 6.8% and far out performed other investment avenues such as S&P, Dow Jones, Nasdaq, silver and gold.

It's probably safer to just say it's not a bad investment.A positive NPV just means that the investment will outperform the discount rate.