In addition, we live in Jersey where there is a fee for everything and the only thing we get in return for our fee is a receipt.  

But they can be a great option that provides in many cases a much superior return to the cash thrown off in appreciation rich/cash flow poor areas like SF Bay.

People have short memories and think stuff like that will never happen again......personally I would never buy in those areas unless I'm flipping it and moving on.....no way would I buy a long term buy and hold there.I just sold my property in Kingwood.....flooded all around the neighborhood but not near my property...it was a stressful 2 weeks..... really don't want to do that again....dodged a big bullet with no flood insurance and I'm not counting on dodging mother nature again

Thank you for the value this community has already provided, i hope to return the favor soon.

If they made good returns for investors in the past they probably know what they are doing.

Long story short I wanted to return the security deposit, and find a new tenant. 

Depending on what tax bracket you are in, and whether or not you are subject to passive loss restrictions in the eyes of the IRS (i.e. make less than $150k per year in active income, or qualify as a professional real estate professional), that annual total would then be added to your federal tax return.

Most of the OZs (75%) don't provide financial requirements for economic return, however when OZs are paired with the right market conditions the investor is $44 richer for each $100 invested in OZ vs standard investments with no tax benefit (SP500). 

The cap rate is not what level of return you are willing to accept, it is the level of return that the market currently demands to deploy capital.

Unless you're getting a screaming deal such that the extra $67/month won't put a dent in your return, I would just move on and look for another one.I focus on south city nearer to "the hill" which is relatively high ground.