Pretty solid appreciation in that area with an average of 5-7% per year, and it's also close to a lot of industries like the Chrysler plant.

The evidence will still stand, and there's enough info in this thread that ANYone can prove for themselves that it does. 

You need to understand how to drive the Net Operating Income to produce a good solid return. 

It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

@Todd Nguyen - while I'm biased, I think we have a solid product in California with good pricing and coverage, and it's still fairly available across the state (unlike the other carriers that are unfortunately leaving).

Here is a solid summary from an internet search that will give you all you need to move forward:"A notice to terminate a property management agreement is a written communication to the property management company that informs them of the intention to end the contract.

It might be wise to remove the listing, and relist as a brand new place now that you have a solid cleaner.Some of the comments show that the paint has issues etc.

These sellers paid much less than what the going rate it today, likely have no mortgage or low interest rate mortgage and do not need to push rents to market value to cash flow.They get solid returns at their current rental values, have minimal headache with current tenants and they don't need to do major repairs to get their properties sold for a solid value. 

Having a solid team around you like agent, lender etc.

I wanted to get advice before pitching it and have a solid financing strategy.