And so on depending on how desirable / undesirable the area is.So my question is, for anyone in Denver using this method, what % rate are you using?

It does have a few undesirable blocks and you just need to stay away from those.

I get that the ones making money are self-managing to some degree, but that's not an option for many (or undesirable). 

There are decent schools but far too many are undesirable.

Long Beach (a port town, the largest on the West coast), has always been a "rough town" and you need the guidance of a local agent.It is illegal to red line specific areas (ie identify neighborhoods as undesirable). 

But actually asking an investor to 100% fund it and get half, that sounds very undesirable.

Out-of-state investors often do not know how to find profitable neighborhoods and usually end up buying a property because of the low price, although it may be in an undesirable neighborhood.

Cap rate goes from 10% (purchase estimate)  to 13% (proforma)First things first, I will bring rents up to market (maybe turn over some undesirable tenants).

In my opinion, that could be a game changer for residential in the downtown and peripheral areas but the fortunes of Sac real estate in general will always be underpinned by government jobs.As for which market has more cash flow vs appreciation potential, it's highly neighborhood specific.

Prices were printed once a day, and if a stock was highly desirable or highly undesirable the price was what ever the seller could negotiate.