I live down in Silicon Valley, but Sacto is looking pretty sexy from a return perspective.R

They may not be as sexy some four hundred thousand dollar deal but they could lead to it some day.

Syndicators, prior to the rate hikes, were returning large returns (upper teens was common) and is very passive.  

It’s not sexy, but its good business. 

I would agree with the original point that market gain is the name of the game for holding properties in Asheville, since surrounding areas, such as Canton, Greenville, Lenior and hickory offer potentially higher rental return ratios, but are not quite as sexy when it comes to long-term market gain. 

You dont want tie up your funds on a ok deal, wait a bit and find a sexy deal. 

Otherwise, it's easier to invest passively to get IRRs in the teens.

In terms of IRR, you can expect publicly traded REITS to have IRRS in to high single digits to mid teens and Syndications in the mid teens to mid 20's or higher IRR. 

When I calculate total return: principal paydown, tax benefit of interest deduction on mortgage, cash flow, (I assume 0% appreciation), I am somewhere in the mid teens in terms of total ROI.

I am seeing ROI's in the mid-teens every year!