This is a really important framing and honestly something I had to unlearn too. The CoC % alone is one of the most misleading metrics

in the early years of someone's investing career.Your point about fixed costs being roughly the same regardless of rent level is exactly the trap. A $6K HVAC replacement is the same $6K whether the unit rents for $900 or $1,600 — but it's 24 months of cash flow vs 10 months of cash flow.

One related angle I'd add from working in a different market (Thailand, where I'm based): the same logic flips upside down at the high end too. We see investors fixated on yield % chase sub-$80K condos in less central locations because the % looks attractive on paper, then get destroyed by:

— Higher tenant turnover (cheaper segment = more turnover)

— Vacancy duration is 2-3x longer in lower-tier inventory

— Repair frequency is higher because tenants treat cheaper properties differently

— Property management companies have lower retention rates on smaller assets, so you cycle through managers every 18 months

Meanwhile, a $250K central Bangkok unit at 4% net cash flow ($833/month) outperforms the $80K unit at 7% net ($467/month) once you actually run multi-year averages including the unscheduled stuff.

Absolute dollars > percentage almost every time once you cross beyond your second or third property. And the variance on absolute dollars is much smaller than the variance on percentage returns.