Quote from @Jordan Ryan: Yea I’m getting mostly around the same numbers honesly just very hard to get a a decent coc return with these rates.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Be sure to tell your accountant that you may now need to file non-resident income tax returns in each state where you own property as well.

But, invest it in a mutual fund paying an average 8% return per year. 

However, leveraging your money with a 30-year mortgage could give you the chance to buy more properties, increasing your overall returns and diversifying your investments.

I claimed for years 1) initial cash flow and cash flow over a long hold have a poor coupling 2) that I would purchase a property with negative initial cash flow.  3) I cared about total return and did not give a $hit about cash flow if the other returns produce an outstanding return 4) that cash flow is my least favorite return because it gets taxed annually. 

It is also my understanding that this would result in large tax returns (from depreciation offsetting my other active income) that I could use to continue to expand my portfolio. 

@Rud SevIt's really your CPA's job to walk you through your tax return.

Your drive to learn and network will be invaluable as you explore creative strategies that maximize returns and minimize upfront costs.Feel free to reach out, ask questions, and share experiences this community is a great resource for learning and connecting with like-minded investors.

In larger volume, you can get better return.  

The amortization of the loan by itself plus depreciation would probably bring your internal rate of return well over 15%.