Experts, we've lived all over the world for a year or two here and there. Presently I live in a central US urban region which leans to government-technology.
Housing is tremendously cheaper here than (say) SF or NY or Paris. You can get a perfectly reasonable 5-10 yr old large house for 200k and you can get a lovely McMansion for 400k or even less. That's all great.
Now, I've noticed prices are going absolutely nowhere, there has been no increase for 10-15+ years (perhaps because there's just plenty of green fields for the municipalities to grow in to with new divisions) - so buying here I'd just assume prices will never especially go up - and that's fine too.
Further, I've noticed that houses here wait to be sold for LONG periods of time, it's totally normal for a house to sit unsold for a year+ (this is astounding if you're used to London, Sydney or whatever).
But most astounding to me. Rental returns seem enormous - to me. (Maybe I'm clueless.) One can quite easily today buy a house for 180k-270k that would rent out for 1700-2100 / month. There's a house for sale asking 400 (been on the market 2 yrs! could probably get for 350) which rents for 2800 /month. There's a specific house I could buy for 190 (perhaps even less) that rents for exactly 2000 / month. That seems an incredibly high return to me. (Again if I'm wrong, tell me.)
And indeed, there's a big demand for rentals, it's very easy to rent out a house - there's a shortage.
I've never owned any property I've rented out. I am 100% aware of the costs that can come up, ongoing and sinking. Even so, the rental returns here seem "ridiculously high" to me based on other markets I've noticed.
What I want to know is,
am I missing something, will you rental experts tell me "oh there's lots of markets like that but, what you don't know is _ _ _"
is it just kind of a flukey unusual situation - are there any markets known to be like this? should I just "grab with both fists"?!
maybe I'm all wrong and this is actually suck rental returns, if so, feel free to slap me around with the facts!
Thanks for the insights!