I do NOT want this to be a discussion of the merits of real estate as an investment but rather about where yields are better for an all cash purchaser . In ny Ive obtained around 5% or 4.5% but that was last year and prices are up and no inventory left in Williamsburg area where i invested and that was above the norm in ny i realize.

Anyway, i want to purchase elsewhere not have more exposure in ny. Looking in medium sized cities in mid Atlantic for condos -- and I've Justin started to look -- it's not much better than NYC . A friend looking in Miami is looking at a couple places that are below 5%. Anyone suggest a market where yields are higher for a cash purchase? (obviously a relevant issue is the price outlook,risk factors of that market).

There're quite a few REIT ETFs returning more than that, so you could see where the REITs are investing. Or do it the easy way and just buy the ETFs.

This doesn't answer your question but...

By cash purchase you mean unlevered yield?
And what do you mean by yield? A snap-shot in time when the unit is occupied? Otherwise, think impossible to say unless buying several units at a time to smooth out costs+revenue losses.

>Brooks2 - are these mortgage reits the equivalent of junk bonds? How can you possibly be getting 15@ returns with mortgage rates so low?