It would have to be a really strong investment to make those numbers work well for you. 

I know they bought that property based on analysis, but don't know the market or area.I'll bet there is all kind of opportunity where you live. 

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

With your background in real estate investment and home building, you’re already off to a strong start.As a real estate professional in DFW, I know how competitive our market can be.

If you understand it and have a strong feeling of its value go for it.

Based on your question and your expectations, stay in index funds.

He was fresh out of college and nervous about his first investment in Omaha, of all places (my home base).

Build a solid team and evaluate deals carefully using tools like BiggerPockets calculators to ensure strong cash flow and returns.Good luck!

It sounds like the separation between success and failure is based on proper preparation and realistic expectations.

NCM appears to not have been ready for this process since it had experienced a strong market for many years.