For Israelis, the White Picket Fence Hides Big Risks

Young Israelis are increasingly snatching up residential property in the U.S. for investment, but experts urge caution.

The deal the saleswoman on the phone was offering seemed too good to be true: a 1,500-square-foot house in Phoenix, Arizona. The house, Suli told me, had four bedrooms and two bathrooms on one floor and sat on a 6,500-square-foot lot. And the price? $78,000 including broker's fees and renovation costs. It could be rented out for $800 to $900 a month, Suli said. That means even after the company's 8%...