The 1st question I asked him when he told me on the phone that their had been a fire was "what did the insurance say?" as

Clearly, if you have a vacancy of two months between tenants and all your tenants are short term (lets say a year), then your actual rate ends up being 14.28%!!!

I hate it because Let's say a 1% property in TX vs a 1% property in CA or more realistically NM or OK$1,500/month on 150k in TX with 2.8% property taxor$1,500/month on 150k in CA with 1.1% property taxwith all other expenses being roughly equal property tax in TX would be $4,200 while in CA it would be $1,650, that makes a big difference. 

Then he or she didn’t say a word or take any precautions because they want a paying tenant? 

Let's say a pro buys for $120k, puts $30k into it (all cash) and sells for $180k. $30k profit on 150k cash = 20% CoCAnother guys buys for $140, puts $30k in and sells for $180k.

but I agree with you basically on Denver West and Premier locations of most cities.. but you look at say a Rochester or Buffalo or massive parts of Detroit.. houses cost more 20 years ago then they do now. 

@Estelle Angelinas I don’t mean to say a big beautiful kitchen with amazing countertops isn’t going to sell.

I would say as long as you have a good team in place you can call upon, go for it. 

Typically in the suburbs, say a nice single family home that should get $2,000, advertised for 1,600; or a piece of junk the other way round, asking 2,000. 

What would you say a "good buy: Cap Rate is for Vegas?