BiggerPockets

What states are best to find cash flowing properties, and which ones should i avoid??

Thanks,
Vince

Flyover states and "Red" states are typically the best states for cash flow. In other words, in states that are left leaning (socialists), the cash flow is very poor - because socialism and capitalism don't mix. In states that still have some capitalism remaining, then the cash flow can be good.

Mike

This is available in all states, depending upon your ability to find homes or apts for very little cost.

Using the 50% rule you set aside 50% for repairs and expenses and the other 50% for financing. If you purchase properly (at low cost) then the 50% less full financing will give you cash flow.

The purchase price is the major factor along with rents. For example a distressed SFH that only costs 1,000.00 with repairs of 19,000.00 will only need to have rents of 474.00 to make 100.00 cash flow.

Vince, I would not spend much time with electoral maps although I am sure there is a correlation. Instead, just focus on places where property prices are low relative to income. As MikeOH mentioned, most of the flyover states will definitely qualify.

Memphis, TN is a great cash flowing states. Most of the properties can be purchased, renovated, and refinanced for pennies on the dollar. The average income in the Memphis area is much lower than the national average and a majority of the city rents.

Look for diversified economies in the midwest. I like Indianapolis,IN but wouldnt say the same for the whole state. This is typical in the midwest. Every economy in the state is not equal.