Finding a cap rate >7 on a duplex with positive cash flow in Western Washington seems like a unicorn in this market, but we found it and so far I enjoy mowing the lawn every 2-3 weeks as an excuse to check in on the tenants.

Prop Tax $1,476 per year Keep in mind in CA there is a cap on future property taxes after purchase.

The neighbors and good doers loved me.I bought up the houses that were foreclosed and empty, fixed windows and now they want to put a cap on the rents I can charge. 

Many water districts still don't allow this, alas my houses are in 1 area, in 2012 the water district canceled our water "use" rights and welded a cap on our well. $13k later we had a water line.

Many of you are forgetting that just because there is a cap of 5% on rent increases,by golly you're going to increase them the full 5%, perhaps in a show of retaliation.

The combination of that high of a cap rate with only 25% of (low) rent budgeted for all expenses  and the expectation of no maintenance for some time, as an out of state investor, is a recipe for disaster here, I’m afraid.

Also, is there a cap on that type of loan? 

Owning rentals allows you be a business owner rather than an employee.Like most people I have a 9-5 job that I'm an employee at and my income has a cap. 

If you can't do the work yourself, then you need access to a capable, hardworking, and cheap handyman, and in this economy, they are a very rare breed.Lastly on my extremely abbreviated list, YOU HAVE TO LIVE THERE.

In previous years they've also had funding for upgrades to your property if you agree to rent to low income families, which essentially puts a cap on your rent.