I think it depends heavily on the deal you get and what part of the cities you invest in, but I do think when you average it, it can seem pretty low. 

To all the other posters, the process in Cook County, Illinois is heavily in favor of the tenant as of right now.

G'Day Hughston,The best advice I could give would be to not invest out of state unless you buy turnkey.But that's just me being biased.The second best advice I can give is to focus more on the people that you will be working with over the stats/demographics of a specific area.I'm sure that this has been covered many times in the various BP books but to this day it rings true.You will heavily have to rely on the folks on the ground.They will either make or brake your investment so choose them wisely.If you buy the best house, on the best street, in the best area with the best capital growth projections.But your property manager is incompetent or a cheat.You will loose money.So, team first, area second.Much success

.- Landlord friendly compared to West Coast states- I'm heavily biased towards Hamilton County.

So in conclusion, I would heavily weigh your desire to move from the area and your desire to turn a profit in an area that you already have some market knowledge of. 

My guess is that the most heavily populated states will initiate legislation, while rural states may be less motivated to do so. 

I personally, being on the NAR Board, at multiples levels of the organization, and being heavily involved on the lobbying/legal side have been way ahead of the curve on this stuff. 

@Mimi Wright the inspector is the "Hand of God" so it depends heavily on what they said and directed to be done. 

This makes more sense to us than relying strictly on  rigid yes or no criteria where any negative  disqualifies a candidate entirely.Some criteria is weighted more heavily and can overcome negatives. 

I invest heavily here myself with reliable contractors.