I think there is a tendency for people to believe Property managers can make all their problems go away especially in C/D type properties.

@Saeed Jassani appears you are not only comparing two different markets, but probably also two different asset classes.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

This article says 5.5-6%.  What do you all think of this???https://www.northmarq.com/insights/research/los-angeles-4q23...

Obviously the C and D neighborhoods will offer higher cash flow at a lower price point, but there's also some good opportunities in A- to B neighborhoods depending on what your strategy is.  

Good stuff, although in our experience, most investors going OOS, don't do enough market research.We really push understanding the property Classes of the market, so someone doesn't put "lipstick" on a Class C or D and sell it to an OOS investor as Class A or B!

@Zach C., thank you for your reply.

Most new development is well over this mark and, since there aren't likely to be many more complexes built that offer decent living conditions for lower-end rents, there is probably some room to raise Class B/C leases in the coming years as more people move into Louisville.And, if things do decline, the "luxury" crowd is going to be looking for cheaper digs. 

@Nick C. nailed this.

This was a C- neighborhood.

Preferably turnkey in a good neighborhood (C+ and above).