The area: Sandusky, OH 44870.

The local economy: tied to the seasonal fluctuations of Cedar Point, an amusement park. Most major blue-collar jobs have left leaving a primarily services-based economy around Cedar Point tourists.

Background: I grew up there (live in Maryland now) and have seen my childhood neighborhood get taken over by the Firelands Regional Medical Center and have seen the surrounding area properties fall into disrepair. I have a team in place: agent, prop mgmt company, handyman, lawyer, et al. 

When I buy, I pay cash. I'm fortunate enough to own a couple tech companies that permit me that option. My goal is to find income producing assets for retirement. My two options today are between triple tax-free bond funds from T Rowe Price or incoming producing properties.

I have found a number of cash flowing properties that beat the tax-free return from the bond funds. My CPA created a spreadsheet for me that will calculate the return on these properties by taking into account my current tax rate (the highest) and the tax savings from the depreciation on these properties. When comparing the two returns, I want as close to apples vs apples as possible.

In light of all that, would anyone invest in cash flowing rentals when the potential appreciation is little to non-existent given the goal is cashflow only?