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Cash flow properties, need advice on what cities to look

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Mary Joe

Brooklyn, New York

Feb 04 '13, 06:30 PM


Can someone give me advice on what are some of the cities that are worth looking into for relatively low cost properties that cash flow?

There is nothing in my local area that cash flow unless you put 50% or more down. So now I am considering looking for out of town properties that cash flow.

Objective: I am conservative, looking for stable cash flow long term, prefer areas that are not too shady and tenants who don't mind paying rent by direct deposit.

Any advice on where to look would be appreciated.

Thanks
MJ

NOTE FROM MOD: THIS THREAD MUST STICK TO DISCUSSION OF WHERE TO INVEST. IT IS NOT FOR ACTUALLY DOING DEALS. REQUESTS FOR SOMEONE TO CONTACT YOU ARE CONSIDERED ADS.


Edited Feb 8 2013, 14:21 by Moderator


Joel Owens Verified Moderator

Commercial Real Estate Broker from Canton, Georgia

Feb 04 '13, 07:14 PM


Atlanta has some good yield if you buy in the right locations for multifamily.



Medium_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: http://www.AWcommercial.com
www.AWcommercial.com 678-779-2798 [email protected]


Zac P.

Real Estate Investor from Lexington, Kentucky

Feb 04 '13, 07:22 PM


You know what they say, "Everything is bigger in Texas!"



Stephen Masek

SFR Investor from Mission Viejo, California

Feb 05 '13, 05:15 PM


"Low cost" means different things to different people. Please be more specific.

There is also the issue of initial vs ongoing cost. We worked with an agent in Atlanta who was selling $11,000 and lower houses to one buyer, but I'll bet he has to almost completely re-do them between tenants, and has high turnover.

It is best to put 100% down, then you do not have to worry about loans in these dangerous economic times, with government run amok.

Some properties have appreciation potential, while others may be lucky to keep up with inflation.

Joel, all of that exterior wood on those quads looks like a big maintenance headache, and the numerous other buildings in the complex will tend to lock rents to whatever the others are charging.



Joseph M

Real Estate Investor from Los Angeles, California

Feb 05 '13, 06:16 PM


How about Rochester,NY . I know it's not too close to NYC where you are but it should be pretty easy to cashflow there.



Mary Joe

Brooklyn, New York

Feb 05 '13, 06:22 PM


Originally posted by @Joel Owens:
Atlanta has some good yield if you buy in the right locations for multifamily.

Joel Owens hey Joel how are you? Yeah we would like to know if you have any good recommendations for Atlanta.



Mary Joe

Brooklyn, New York

Feb 05 '13, 06:29 PM


Originally posted by @Joseph M:
How about Rochester,NY . I know it's not too close to NYC where you are but it should be pretty easy to cashflow there.

Good idea, I haven't thought about that, I think both Rochester and Buffalo are worth looking into, thanks Joseph



Ben Leybovich Video

Real Estate Investor from Lima, Ohio

Feb 05 '13, 06:48 PM


Some parts of Ohio are good relative to CF.



Medium_logo_03Ben Leybovich, JustAskBenWhy.com
E-Mail: [email protected]
Telephone: 1.888.508.9643
Website: http://www.JustAskBenWhy.com
Ben Leybovich, Syndicator / Creator of Cash Flow Freedom University http://www.JustAskBenWhy.com


Joseph M

Real Estate Investor from Los Angeles, California

Feb 05 '13, 06:57 PM


Yes Buffalo has many low priced properties as well. I've had family that did pretty well in the Buffalo and Rochester area. I have done some deals in the Buffalo area but they were wholesale deals versus buy and holds. You might also want to look into Niagara Falls as well.. Haven't look at the properties there for a while, but should be similar to Buffalo/Rochester prices..

I think Atlanta and parts of Ohio as other mentioned are good suggestions too.

I do envy people that live in an area where properties can be bought cheaply.

I'm considering moving because of the cost of properties in SoCAL.



David Niles

Real Estate Investor from Buffalo, New York

Feb 05 '13, 07:14 PM


Our market in Buffalo is very similar to Rochester, right down to the point of the market changing street by street, let alone blocks. Many areas that have great value for rehabs, others that are buy hold for cash flow.

Originally posted by Joseph M:

I do envy people that live in an area where properties can be bought cheaply.

I'm considering moving because of the cost of properties in SoCAL.

I dont envy you guys trying to work deals in your markets, cant buy a box with no land for what you can buy a decent house here for, NYS though our taxes suck.

I am not working in or endorsing the falls yet as it just doesnt seem to be ready for the bounce back, way too many boarded up homes of no value and the rental market is tough too. I would probably look a little deeper if I had too but theres more than enough still working in my current areas with no end in sight.



Joel Owens Verified Moderator

Commercial Real Estate Broker from Canton, Georgia

Feb 05 '13, 09:22 PM


Stephen,

Those buildings are from years ago and no longer available. That website is an old Joomla site I have that I keep because it has page 1 rankings.

I am having 2 new Wordpress websites completed with line by line custom code so that I can do anything with the sites I want to. They are truly one of a kind. One is for triple net properties nationwide and the other is for apartment investing nationwide. Those are my 2 areas of focus and I do not do anything else. Yes on those quads that is original cedar wood siding. You simply take off and put hardi-plank on and repaint.

I do not mess around with duplex's, tri-plex's , or quads anymore. I do large scale listing and sales in the commercial space. What you mentioned about 11,000 houses in Atlanta isn't worth my time. A big headache for an ultra low, low payout.

Hi Mary,

I have been doing very well and also talking with your brother. I will send some things and projections his way and you can discuss them related to multifamily.

Atlanta has great yields but you have to buy in the right spots just like other places.

Texas is good but some commercial research I have read lately points to a possible bubble in a few years with all the building and permitting going on for apartments. That could lead to occupancy drops and rent reductions or staying flat with an overbuilding bubble when supply catches up with and passes demand. The research analyzed how much permitting had picked up and expected units coming online within the next few years versus population levels etc.



Medium_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: http://www.AWcommercial.com
www.AWcommercial.com 678-779-2798 [email protected]


Dean Letfus

Real Estate Investor from Memphis, Tennessee

Feb 05 '13, 10:09 PM


Memphis has some of the best yields in the USA, look here!



Jon Klaus Verified Moderator Donor

Real Estate Investor from Garland, Texas

Feb 06 '13, 05:43 AM


Texas is good but some commercial research I have read lately points to a possible bubble in a few years with all the building and permitting going on for apartments. That could lead to occupancy drops and rent reductions or staying flat with an overbuilding bubble when supply catches up with and passes demand. The research analyzed how much permitting had picked up and expected units coming online within the next few years versus population levels etc.

Joel, do you have links to the research? Apartment overbuilding has happened in TX before, but demand is in the lead for right now.



Jon Klaus, SellPropertyFast
E-Mail: [email protected]
Telephone: 214-929-6545
Website: http://www.sellpropertyfast.com


Stephen Masek

SFR Investor from Mission Viejo, California

Feb 06 '13, 08:21 AM


Originally posted by Joseph M:
How about Rochester,NY . I know it's not too close to NYC where you are but it should be pretty easy to cashflow there.
I was in Rochestder and drove around NY through Watkings Glen, the southwest corner, Niagara Falls, and back to Rochester a few years ago for the AWA convention. People everywhere complain about crushingly high property taxes. They do not have the Proposition 13 which we enjoy in California.



Stephen Masek

SFR Investor from Mission Viejo, California

Feb 06 '13, 08:27 AM


Originally posted by David Niles:
I am not working in or endorsing the falls yet as it just doesnt seem to be ready for the bounce back, way too many boarded up homes of no value and the rental market is tough too.
The US side was a downright disgrace compared to the Canadian side when we visited in2008. We were shocked.



Stephen Masek

SFR Investor from Mission Viejo, California

Feb 06 '13, 08:33 AM


Originally posted by Dean Letfus:
Memphis has some of the best yields in the USA, look here!
We've got two houses there, but would like to find a better property manager. Any suggestions? We're also shopping for more properties, so what areas do you like? We prefer newer and nicer, such as the brick 3/2 in Cordova we got for $85,000.



Joseph M

Real Estate Investor from Los Angeles, California

Feb 06 '13, 09:07 AM


Yeah that is true , some of the taxes are definitely insane in NY...but it does seem that despite that people are able to cashflow on properties in Rochester,Buffalo, and other areas around there.

True Prop 13 does help a lot if you have owned your house a long time.

I heard there was some talk about getting rid of Prop 13 or overturning it...but I doubt that would happen.

I imagine home prices would go down a LOT in CA if that happened..especially in the more expensive areas.

But now because of the whole housing crisis there seem to be a lot of markets with good cash flow and probably lower property taxes than NY. Lot's of Florida markets look good.



Mary Joe

Brooklyn, New York

Feb 06 '13, 05:42 PM


Originally posted by Stephen Masek:
Originally posted by @Dean Letfus:
Memphis has some of the best yields in the USA, look here!
We've got two houses there, but would like to find a better property manager. Any suggestions? We're also shopping for more properties, so what areas do you like? We prefer newer and nicer, such as the brick 3/2 in Cordova we got for $85,000.

Hi Stephen, may I ask how much does your $85K property in Memphis cash flow per month?

Thanks Dean, will check out Memphis also.

BTW, what cities do you guys think offer the "sweet spot" for cash flow properties?

It seems that low end properties (eg: around $50K) do cash flow very well but I am worried about the caliber of tenants these properties attract. On the other hand, while properties that are about $100K or higher may attract better quality tenants, the cash flow is very unattractive.



Dean Letfus

Real Estate Investor from Memphis, Tennessee

Feb 06 '13, 05:53 PM


In Memphis the 60 to 90K market is very solid. Rents at the price will be from $875 to $1350 a month



Mary Joe

Brooklyn, New York

Feb 06 '13, 06:31 PM


Originally posted by Dean Letfus:
In Memphis the 60 to 90K market is very solid. Rents at the price will be from $875 to $1350 a month

Thanks Dean, what neighborhood in Memphis should I look at?



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