Most home owners are only familiar with California Closets pricing and automatically perceive closet fit outs as being expensive.

I understand how you are perceiving this I am just talking about reality and not emotion. 

That's most likely going to be a C- neighborhood or lower so there could be more perceived scale to BRRRR, but a tougher decision on how to renovate at that price point and possibly harder tenancies.I would get to real estate investor meetups in your area.

You can probably make up for the perceived loss through the reinvestment in your US business.

In this function, they will typically make better returns AND have a lower perceived risk level because they are controlling the assets.  

The perceived benefit to the investor is they either get the inflated price, or if the deal goes "bad" and the tenant defaults they get to keep all the deposit money and rent and all that.

Any "perceived" deception at any point, will be severely counted against you by the court.

There are many people on instagram and other platforms selling courses appearing in a certain image, selling a lifestyle that is not 100% congruent with reality and sometimes reality can strike hard and shatter perceived illusions. 

It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate.

I believe it is a larger issue than what we define as the economy, which is mostly measured in corporate profits and Wall Street performance, this is not what the average person perceives.