My str (owner operated) nets 12-15% of gross depending on yearly expenses.

If your flip runs over budget or you can't sell, you may find yourself in a pickle that is very expensive to escape.

Out of area investments do require a trusted team of people that can help with the management.

@Isadore Nelsonno, this is not reasonable - you're leaving out lots of expenses. 

You can build apartments in Homestead florida located in miami dade county right now on infill lots going for less than 100k. we are just beginning to look at the entitlements required and have one investor considering them. we would put 2-3 housing units per lot. don't go to fort Myers or any of the other locations that don't have market drivers like miami.

I would also require your tenant to have insurance of at least $100k liability. 

Most lenders require you to hold under a LLC anyway. 

San Francisco is not expensive because of it weather.  

Balloons coming due with higher interest rates, China market, China production, Manufacturing production moving back to the US, Worker shortages, Workert pay hikes, Ukraine/Russia food and fertilizer misses, Oil prices increasing due to the OPEC Q1 production curtailments in place, Houthi issues, Panama Canal Water issues, Illegal immigration impact (buy one of those office buildings and rent for $10mm per year for Illegal housing, take advantage) social benefits required, Climate change believe it or not- Buy or sell into that thought process,  US politics, Baby boomers leaving workforce and needing more benefits, Baby Boomers moving from Stocks to Bonds,  etc.I agree things will get worse, but that means more investing opportunities. 

@Ryan Lee   The 60 day seasoning period is really more of the max bank statements that would be required for underwriting would be 2 months of 60 days.