It can also go wrong in ANY city/state in the country. 

I've helped hundreds of out of state investors passively here in the southern/middle part of the country. 

We strategically focus our multifamily investments in the Southeast region of the US for two key reasons:Lower Costs - Properties are less expensive to acquire in the Southeast than in other parts of the country.

That goes for most big metro cities across the country outside of some in the south. 

There are good and bad areas to invest in any country (and even in Madrid, I've heard of people making much higher yields than those you mentioned).

A DST is a hands-off, institutional grade real estate investment (apartments, self storage, commercial, medical office, etc), that allows the investor the option to diversify into multiple markets around the country.

An incredible infrastructure of subway, speedways and high speed trains to the rest of the country had help as well.If interested in investing in Madrid, I will be happy to meet and give specific tips and be your host in Real Estate subjects.RegardsDiego Martínez León

I'm in the Mortgage Industry reviewing appraisals from different market areas around the country.

Usually the northern portion of the country has this issue.   

Local city or country building department can give you the code info.