BiggerPockets

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

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

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.

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

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.

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.

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.

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.

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.

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