There's levels to it. If they bought the place cash, then the only thing they have to cover is the property taxes and maintenance. They are still getting a retu

There's levels to it. If they bought the place cash, then the only thing they have to cover is the property taxes and maintenance. They are still getting a return on investment, but it's like 5% per year (assuming property values track inflation). You can see this in denser metros, where they put more cash down, thus reducing their returns. If they bought it 20% down and want to cash flow for a goal of 8% cash on cash, that's another type of return on investment. If the property value tracks inflation, their return is probably closer to 20% yearly. Also they can shelter that income through depreciation, mortgage interest, expenses, etc.