I assume 100% outsourced work when I run my numbers, and then if I do any of the work it's not an additional return on capital, it's payment for my labor.
For example, let's say I would net 6k annually from a certain property if it was managed for me, which works out to a 12% return. Then I manage it myself, and save myself 1200 bucks. My return doesn't suddenly shoot up to 7200 net, and a 14.4% return. My return on capital (i.e. the investment return) is still 12% (6k), and the return on my labor is $1200.
Some day I may not want to do work myself, so if and when the stuff I do is outsourced, my return shouldn't drop (the house isn't making less money, or having more expenses now), I just no longer have a side gig of paying that expense to myself instead of a property manager.
That being clarified, I shoot for double digit returns with outsourcing everything (all maintenance, management, etc). There is still of course some work of managing the manager in those circumstances.
Real estate takes me a few hours a month during the busy months, counting managing a half dozen myself, and having more managed for me elsewhere.
I also have paper real estate assets (i.e. notes - where I am the bank and hold the mortgage). These are a lower return than my rentals, but WAY more passive.
It's the route I would take if I knew nothing about real estate - lend it to a smart investor who does, and collect paychecks from them.
You should be able to get a solid 8% return at least with very little work and lots of security (secured by a property).
tl;dr - Plan on outsourcing everything, get an investment that supports that with a good return still, then pick and choose what you want to do as an additional side-gig.
