How to find cash flow markets?
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Bryce JamisonPro Member
Rental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votesI'd highly advise staying away from properties in the 80-120K range (more specifically in the C, D, & F range). These properties always have the best ROI on the spreadsheet, but the spreadsheet doesn't have a formula for the type of renters you're going to get in these properties. That increases cash flow comes with substantial more risk of tenants not paying, tenants causing significant damage, and potential criminal activity. On top of this you'll be out of state which can makes these issues much more difficult in terms of time and money to solve.
41 Replies
- 3yAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Florencia Cafure:
Quote from @Alfath Ahmed:
Quote from @Ali Saad:
Hi there!
I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:
- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)
- Cash flow rental
- Pro landlord state
I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?
I would look into the Columbus market for it appreciation and cashflow. It's the Seattle of the midwest. We have Intel, Amazon, and Google's new data center coming to downtown Cbus. Most of my usually buy in areas like Old North, Old Town East/King Lincoln Bronze Ville, Merion Village, Driving Park, North Linden, Hungarian Village, Bexley, and North Hilltop.
I can send you a helpful neighborhood grade map that shows the different areas of Columbus.
Would you mind sharing me that too please?
Yes I can. I just sent you a PM.
ReafCo | Ahmed Group 539 Reviews Quote from @Ali Saad:
Hi there!
I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:
- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)
- Cash flow rental
- Pro landlord state
I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?
How,? Network. I know dozens of investors from Ca, that have purchased 100s of homes in the Cleveland markets. I too live OOS and have purchased many many properties as well. I just got back last night from a 2-day trip to Mississippi, we are going to start buying there next week. as well, also with 10% ++++ net caps or better. Again, it's all about your network and knowledge,
Notice how I mentioned 2-day trip, that's all it takes. So many spend months " researching. " And still never do anything. What the heck are people researching for months LOL, TWO DAYS, and we will pick up about 10 this coming month.
Good luck
- Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes3y
Quote from @Sierra Roth:
Quote from @Melissa Nash:
The good news is that you can live where you want and invest where it make sense.
I live in Socal too! And invest out of state with passive real estate investments. You have to decide what type of an investor you want to be but not only that what is the strategy that you want for your life. If you want to be an active investor or passive.
Personally I do have a mix with both short-term rentals that are primarily here in CA. And then I have passive turnkey out of state in markets like Bham, Ohio, Memphis. I like having my long term rentals professionally managed and I have never seen any of them in person, and don't need to. Its 100% passive.
I added short-term rentals 5 years ago primarily because I wanted the first property to actually use with the goal to use it when ever I wanted and just have it pay for itself. Then.. I started to actually profit from it and keep buying.
Long story short..What do you have time for and what are your goals? Short term goals, long term goals? You need to sort that out first and then the rest will follow.
Best of luck! Melissa
Hey Melissa, thanks for sharing. I have been doing some looking into Memphis lately, and curious if you would share which neighborhoods you like or would recommend staying away from? Thanks!
I don't really have a neighborhood there I am picking or staying away from- its more the ARV value & the rental amounts. I'd highly recommend sticking in areas where the rents are over $1000/mo that alone hedges tenant risks.
- Member since 2023 · 2 posts · 0 votes3y
Quote from @Melissa Nash:
Quote from @Sierra Roth:
Quote from @Melissa Nash:
The good news is that you can live where you want and invest where it make sense.
I live in Socal too! And invest out of state with passive real estate investments. You have to decide what type of an investor you want to be but not only that what is the strategy that you want for your life. If you want to be an active investor or passive.
Personally I do have a mix with both short-term rentals that are primarily here in CA. And then I have passive turnkey out of state in markets like Bham, Ohio, Memphis. I like having my long term rentals professionally managed and I have never seen any of them in person, and don't need to. Its 100% passive.
I added short-term rentals 5 years ago primarily because I wanted the first property to actually use with the goal to use it when ever I wanted and just have it pay for itself. Then.. I started to actually profit from it and keep buying.
Long story short..What do you have time for and what are your goals? Short term goals, long term goals? You need to sort that out first and then the rest will follow.
Best of luck! Melissa
Hey Melissa, thanks for sharing. I have been doing some looking into Memphis lately, and curious if you would share which neighborhoods you like or would recommend staying away from? Thanks!
I don't really have a neighborhood there I am picking or staying away from- its more the ARV value & the rental amounts. I'd highly recommend sticking in areas where the rents are over $1000/mo that alone hedges tenant risks.
That is helpful, thank you!
- Real Estate Broker · Milwaukee, WI · Member since 2015 · 299 posts · 90 votes3y
Milwaukee is a great market and you can find sub $200k properties that cashflow . We have alot of duplexes from our early years when we were the Machine shop capitol of the world. Some of the early immigrants would lift the foundation of the property and put in a downstairs apt. But we have alot of ground up duplexes along with multifamilies.
Quote from @Florencia Cafure:
Quote from @Alfath Ahmed:
Quote from @Ali Saad:
Hi there!
I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:
- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)
- Cash flow rental
- Pro landlord state
I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?
I would look into the Columbus market for it appreciation and cashflow. It's the Seattle of the midwest. We have Intel, Amazon, and Google's new data center coming to downtown Cbus. Most of my usually buy in areas like Old North, Old Town East/King Lincoln Bronze Ville, Merion Village, Driving Park, North Linden, Hungarian Village, Bexley, and North Hilltop.
I can send you a helpful neighborhood grade map that shows the different areas of Columbus.
Would you mind sharing me that too please?
- 3yLinda LabbePro MemberInvestor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
Hi Ali we do a lot of investing in toledo Ohio is a landlord friendly state and the 2 % rules still works well there so the cash flow is great. We have teams on the ground that we share. more then willing to chat with anyone about this great area
- 3yRob HowardPro MemberKnoxville TN, USA · Member since 2023 · 62 posts · 42 votes
The rural areas of East Tennessee within 30-45 minute of major cities will offer you MANY cashflow opportunities. They might not exactly look like what you're envisioning. Buying land, putting a small house on it and turning it into a long-term rental is one system that I've seen working. There is a lot of dirt and a dearth of cheap properties available.
I took some acreage that I inherited from my grandparents. It was a few minutes from a seasonally prime whitewater rafting site in Ocoee, TN. When I took possession of the property, I invested $45,000 in a tiny house, septic, electric and city water. That has cashflowed about $15,000 per annum so far. The land is growing in value, the property is paying for itself with cashflow and in three years it's pure profit.
- Miami, FL · Member since 2022 · 60 posts · 39 votes3y
Quote from @Ali Saad:
Hi there!
I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:
- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)
- Cash flow rental
- Pro landlord state
I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?
Here's a list of some of the best cities for cash flow right now
- Investor · BC, Canada · Member since 2023 · 20 posts · 9 votes2y
Quote from @Rob Howard:
The rural areas of East Tennessee within 30-45 minute of major cities will offer you MANY cashflow opportunities. They might not exactly look like what you're envisioning. Buying land, putting a small house on it and turning it into a long-term rental is one system that I've seen working. There is a lot of dirt and a dearth of cheap properties available.
I took some acreage that I inherited from my grandparents. It was a few minutes from a seasonally prime whitewater rafting site in Ocoee, TN. When I took possession of the property, I invested $45,000 in a tiny house, septic, electric and city water. That has cashflowed about $15,000 per annum so far. The land is growing in value, the property is paying for itself with cashflow and in three years it's pure profit.
I will like to know more about this area. I am interested in breaking dirt and building but it should be something that has potential.
- 2yLindsay DavisBusiness MemberReal Estate Broker · Birmingham, AL · Member since 2019 · 326 posts · 203 votes
A good number of places in the southeastern U.S. could fit your criteria—see, for example, @Rob Howard's comment about eastern Tennessee.
Montgomery also comes to mind here. Alabama is a landlord-friendly state, and hundreds of homes currently for sale in its capital city fit your criteria.
Montgomery is decent for cash flow as well—you’ll likely see comparable properties approach or exceed the 1% rule. If you’re willing to put in the necessary elbow grease to conduct a rehab on a distressed property, you could potentially achieve even higher rents
Spartan Invest4.8133 Reviews Quote from @Eliott Elias:
Look no further than Texas. Not all cities cash flow, but there are many that do.
@Eliott Elias would love to know more about texas cash flow cities you have for recommendation.
Quote from @Liam Maher:
Quote from @Ali Saad:
Hi there!
I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:
- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)
- Cash flow rental
- Pro landlord state
I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?
Here's a list of some of the best cities for cash flow right nowwhere is this data from?
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