How can real estate out perform stocks or even be better when the stock market does around 8-10% or even someone who can beat the market and get 15%?

Cash flow is really not relevant because what you are determining is whether the purchase out performs other options. 

I am personally invested in 18 different passive apartment syndications.My opinion is that projections and investor offering memorandums don't always tell the truth when it comes to an investment.I believe the number one factor that will cause a deal to perform well is the operator behind the investment.You could have great return projections but if the operator takes their eye off the ball then it could go south rather quickly.On the other hand, a solid operator can cause an investment to well outperform projections.I personally look for operators that have some form of success in business in their background.Why?

I would think you would want to outperform the market...As such, your acquisition needs to reflect some sort of a Delta to the market cap rate.

The last 5 years was a ridiculous RE bull market that people think will continue indefinitely into the future, RE will begin to go from market outperform to standard performance.The following is an excerpt from my post  The Tech Employee’s Ultimate Guide to Getting Started in Real Estate Investing: Financial HousekeepingBefore we get started with real estate, you have to make sure you’re covering the basics.

Typically these lower risk assets and markets out perform the higher risk markets.

That being said, I think my coastal 92109 assets will outperform my Las Vegas assets over a 20 year hold as long as global warming or rent control / prop 13 repeal don't get in the way.

Was always told town homes are inferior product, as you will never achieve growth/appreciation.However, not experience is quite the opposite, I have achieved significant growth, in fact they have performed as well or in some cases outperformed appreciation of some of my  SFH.Anyone else have similar story.

That being said, a good rule of thumb is to steer clear of advisor's who tell you they can outperform the market (no one has the crystal ball), and advisor's who do not or cannot explain to you how they are paid.

What many people dont understand when they think they can go FSBO is savvy buyers will automatically deduct 6% of their offers.. you have to be in one heck of a white hot buyers market to have a FSBO out perform a top agent