Even though I live in Charlotte, I've spent a lot of time doing loan mods and short sales in places like New York, New Jersey, Philadelphia, Nevada, Arizona, Washington, California, and Illinois, and have seen the possible trap of only being in one area.I've seen landlords who were intensely renting in a certain geographical area get decimated due to the changes in the marketplace in their locality.

Also, carriers don't want to have a big number($) tied up in one area where if one claim hit it would decimate profits. 

Those could easily decimate your NOI number. 

The formula is quite simple and given below:Loan amount / Property value = LTV value as a decimal.

If you actually calculate that ROI, you will likely lose track of decimal places and not be sure if it's 100%, 1000%, or 10,000%.You'd be surprised what Fannie/Freddie will finance, that people don't even realize.

Some former friends were financially decimated but refused to admit responsibility, lived in great denial and always blamed external factors for their own failure.

As another member stated, you'll lose your prop 13 status and that super low tax bill will show up this coming November with the decimal place moved to the right one column. 

If you are going to invest in rentals, or flips, or even successful wholesaling, you better steel up and prepare to work, or you are going to be decimated by those around you that *do* work. 

One bad tenant or an unexpected roof leak can decimate your return.2) The biggest determinate of an investment's success is property manager (also referred to as operator).

@Jeremy VanDelinder  The couple hundred bucks may be nice to throw at some lower level subcontractors , but as a professional you would have to move the decimal point to the right to get my attention