How to Find Cash Flow Properties?

Member since 2025 · 38 posts · 24 votes

Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?

I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.

This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.

Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?

Thanks!

15 Reply

414 views

Most Popular Reply

Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

@John Russo

unfortunately, your analysis is correct - long term rentals just don't cash flow right now with debt on them. not really in any market, or at any price point. the only way to cash flow is some kind of higher risk niche strategy, like a short term rental. anyone who tells you otherwise is selling something.

yes, you can buy off market - typically those properties are distressed and need to be rehabbed. that's the BRRRR method. the BRRRR method right now is an EQUITY strategy. when you're done - you won't have any cash flow. but if you did it right, you might have a fixed up, break even property that doesn't need any capex for a while. nothing wrong with that. but, very tough to do.

can you start with a house hack or live in flip?

happy to dialogue further

20 Reply

See this reply in the discussion

71 Replies

Jump to latestLatest

Sort by

Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y
@John Russo
unfortunately, your analysis is correct - long term rentals just don't cash flow right now with debt on them. not really in any market, or at any price point. the only way to cash flow is some kind of higher risk niche strategy, like a short term rental. anyone who tells you otherwise is selling something.
yes, you can buy off market - typically those properties are distressed and need to be rehabbed. that's the BRRRR method. the BRRRR method right now is an EQUITY strategy. when you're done - you won't have any cash flow. but if you did it right, you might have a fixed up, break even property that doesn't need any capex for a while. nothing wrong with that. but, very tough to do.
can you start with a house hack or live in flip?
happy to dialogue further
20 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Nicholas L.:
  
  @John Russo
  unfortunately, your analysis is correct - long term rentals just don't cash flow right now with debt on them. not really in any market, or at any price point. the only way to cash flow is some kind of higher risk niche strategy, like a short term rental. anyone who tells you otherwise is selling something.
  yes, you can buy off market - typically those properties are distressed and need to be rehabbed. that's the BRRRR method. the BRRRR method right now is an EQUITY strategy. when you're done - you won't have any cash flow. but if you did it right, you might have a fixed up, break even property that doesn't need any capex for a while. nothing wrong with that. but, very tough to do.
  can you start with a house hack or live in flip?
  happy to dialogue further
  
  Thanks Nicholas, I appreciate the reply and info. Unfortunately house hacking is not an option for me at the moment but I will look more into the BRRRR method.
  
  0 Reply
Evan HoppleBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
1y
@John Russo

Try connecting with local investment agents who can give you access to their off-market deals and give you feedback on your numbers/expectations. Getting started is the toughest part, but a good agent connection opens a lot of doors.
[email protected]614-924-8151
Reafco Real Estate
View Page
2 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Evan Hopple:
  
  @John Russo
  
  Try connecting with local investment agents who can give you access to their off-market deals and give you feedback on your numbers/expectations. Getting started is the toughest part, but a good agent connection opens a lot of doors.
  Thanks for the tip Evan!
  0 Reply
Aristotle Kumpis
Specialist · Long Beach, CA · Member since 2011 · 876 posts · 396 votes
1y
Depends where you are looking and what kind of down payment you are using. You still buy properties in the places Memphis, Cleveland, and Indianapolis for under $200K. With 25% down, they do cash flow positive.
4 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Aristotle Kumpis:
  
  Depends where you are looking and what kind of down payment you are using. You still buy properties in the places Memphis, Cleveland, and Indianapolis for under $200K. With 25% down, they do cash flow positive.
  
  Thank you Aristotle I will look into those areas.
  0 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
1y
@John Russo t his is to be expected now. We have had basically 15+ years of increasing prices since the 2008 crash. We are now in a high part of the cycle. Deals are simply harder to find but they are out there.
5 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Ned Carey:
  
  @John Russo t his is to be expected now. We have had basically 15+ years of increasing prices since the 2008 crash. We are now in a high part of the cycle. Deals are simply harder to find but they are out there.
  
  Thanks Ned, understood.
  0 Reply
Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
1y
I would look to see what you can do to boost cash flow. Medium term rentals are a great way to squeeze more out. Rent by the room is popular. Would recommend looking at different ways to get creative to make it a better investment. In this market, there aren't many good deals. You have to make the deal good
[email protected]
Brick House CPAs53 Reviews
Website View Page
2 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Aaron Zimmerman:
  
  I would look to see what you can do to boost cash flow. Medium term rentals are a great way to squeeze more out. Rent by the room is popular. Would recommend looking at different ways to get creative to make it a better investment. In this market, there aren't many good deals. You have to make the deal good
  
  Thanks Aaron, great advice.
  0 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y
@Aristotle Kumpis
doesn't it depend on your definition of 'cash flow?' i think this is where new investors get tripped up. they overlook closing costs, rent ready costs, and then the dishwasher breaks in month 2, and their investing career is ruined. expectations need to be reset.
6 Reply
Preston DeanBusiness Member
Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
1y
HI @John Russo
You're not alone. The market has definitely shifted, and finding cash-flowing deals right off the MLS (especially in the $200–$300K range) has become a lot tougher with today's interest rates and home prices.

Maybe start driving for dollars, direct mailers, absentee owners, wholesalers, networking.
Can you house hack? that might be a possibility
Don’t get discouraged man, you’re running the numbers and asking questions puts you ahead of a lot of people. This market takes more creativity and patience, but deals are still out there if you dig a bit deeper.
Best of luck!
[email protected]817-480-9452
United Real Estate DFW Properties 565 Reviews
Website View Page
5 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Preston Dean:
  
  HI @John Russo
  You're not alone. The market has definitely shifted, and finding cash-flowing deals right off the MLS (especially in the $200–$300K range) has become a lot tougher with today's interest rates and home prices.
  
  Maybe start driving for dollars, direct mailers, absentee owners, wholesalers, networking.
  Can you house hack? that might be a possibility
  
  Don’t get discouraged man, you’re running the numbers and asking questions puts you ahead of a lot of people. This market takes more creativity and patience, but deals are still out there if you dig a bit deeper.
  Best of luck!
  
  House hacking isn't an option for me at the moment but thanks for the advice and encouragement I appreciate it.
  0 Reply
Seth McGatheyBusiness Member
Real Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 252 votes
1y
It is for sure harder to find cashflow but not impossible. Just last year I bought a $300,000 duplex in Milwaukee with 20% down, and I am cash flowing. Technically any property will cashflow in any market if you put enough money down. But the trick is that as investors we are generally trying to put as little down as we can to allow us to keep expanding our portfolio.
Here are a couple things to consider.
Why are you going for cashflow? As a beginner, Cashflow is not all that valuable. (Ironically, beginners almost always focus on cashflow until they get a bit more experience). Beginners most valuable benefits are going to be reduced spending, appreciation, and tax benefits. So let's talk about them and how to get them.
Reduced spending: If you house hack, you can probably get a property where most or even all of your housing costs are covered by your tenants. This is true both in a single family home or a multi family. Saving that much money is huge in the beginning.
Appreciation: Doing a BRRR is going to allow you to get money quick and then cover your expenses going forward. This means you get to ride the appreciation train to wealth generation two times over. The first time is the forced appreciation with your rehab and refinance. The second time is just holding on to the property as it naturally appreciates over time. As long as you are breaking even after all expenses, this is a huge win.
Tax benefits: Taking a chunk out of your tax burden to allow for a bigger chunk of your money coming back to you is huge for being able to continue investing.

If you combine all of these, the money you saved from house hacking, the money you got back from appreciation, and the money you saved on taxes, that should set you up to continue investing. Then in a few years, the properties you buy now, will likely have their rents increase, and you will suddenly be cash flowing. And at that point, the cashflow is just the cherry on top of a massive wealth building Sunday.

Best of luck, and feel free to reach out with any follow up questions.
[email protected]708-297-0996
Seth McGathey - Shorewest Realtor4.913 Reviews
Website View Page
5 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Seth McGathey:
  
  It is for sure harder to find cashflow but not impossible. Just last year I bought a $300,000 duplex in Milwaukee with 20% down, and I am cash flowing. Technically any property will cashflow in any market if you put enough money down. But the trick is that as investors we are generally trying to put as little down as we can to allow us to keep expanding our portfolio.
  Here are a couple things to consider.
  Why are you going for cashflow? As a beginner, Cashflow is not all that valuable. (Ironically, beginners almost always focus on cashflow until they get a bit more experience). Beginners most valuable benefits are going to be reduced spending, appreciation, and tax benefits. So let's talk about them and how to get them.
  Reduced spending: If you house hack, you can probably get a property where most or even all of your housing costs are covered by your tenants. This is true both in a single family home or a multi family. Saving that much money is huge in the beginning.
  Appreciation: Doing a BRRR is going to allow you to get money quick and then cover your expenses going forward. This means you get to ride the appreciation train to wealth generation two times over. The first time is the forced appreciation with your rehab and refinance. The second time is just holding on to the property as it naturally appreciates over time. As long as you are breaking even after all expenses, this is a huge win.
  Tax benefits: Taking a chunk out of your tax burden to allow for a bigger chunk of your money coming back to you is huge for being able to continue investing.
  
  If you combine all of these, the money you saved from house hacking, the money you got back from appreciation, and the money you saved on taxes, that should set you up to continue investing. Then in a few years, the properties you buy now, will likely have their rents increase, and you will suddenly be cash flowing. And at that point, the cashflow is just the cherry on top of a massive wealth building Sunday.
  
  Best of luck, and feel free to reach out with any follow up questions.
  
  That's an interesting perspective, hadn't thought about strategies outside of cash flow but I will reconsider. Thank you for the advice.
  1 Reply
Charles ClarkBusiness Member
Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
1y
@John Russo
Totally understand your frustration—it's tough right now with high interest rates and rising prices. Most solid cash-flowing deals aren't on Zillow or Redfin. I'd recommend looking off-market (networking, direct mail, wholesalers) or partnering with local investor agents who know where the numbers actually work. Also consider house hacking or BRRRR to boost returns early on. You're on the right path—just might need a strategy shift!
[email protected]414-719-6090
Raise the Standard RE LLC54 Reviews
View Page
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Charles Clark:
  
  @John Russo
  Totally understand your frustration—it's tough right now with high interest rates and rising prices. Most solid cash-flowing deals aren't on Zillow or Redfin. I'd recommend looking off-market (networking, direct mail, wholesalers) or partnering with local investor agents who know where the numbers actually work. Also consider house hacking or BRRRR to boost returns early on. You're on the right path—just might need a strategy shift!
  
  Thanks Charles I will look into those.
  0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1y
@John Russo
You're not alone—finding cash-flowing deals on-market in today’s interest rate environment is tough. Many investors are pivoting to off-market strategies like direct mail, driving for dollars, and networking with wholesalers to uncover better deals. Also, consider small value-add opportunities—minor rehabs or under-market rents can create cash flow where it doesn’t exist initially. Finally, widen your search to include secondary or emerging markets where prices are lower and rent-to-price ratios are stronger.
Good luck!
Wale — Houston-based investor agent working with buy-and-hold clients.
[email protected]832-776-9582 Podcast Guest on Show #469
NETWORTH BUILDERS5236 Reviews
Website View Page
3 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Wale Lawal:
  
  @John Russo
  You're not alone—finding cash-flowing deals on-market in today’s interest rate environment is tough. Many investors are pivoting to off-market strategies like direct mail, driving for dollars, and networking with wholesalers to uncover better deals. Also, consider small value-add opportunities—minor rehabs or under-market rents can create cash flow where it doesn’t exist initially. Finally, widen your search to include secondary or emerging markets where prices are lower and rent-to-price ratios are stronger.
  Good luck!
  Wale — Houston-based investor agent working with buy-and-hold clients.
  
  Thanks Wale! Will look into those strategies.
  1 Reply
Jakob Mikhitarian
Member since 2025 · 86 posts · 25 votes
1y
@John Russo I've heard that cash flow is pretty tight, so going to markets with high cap rate areas are your best chance to find cash flowing properties. The typical saying in real estate is you make the most on the buy, so if you're able to find a good deal off market, that's the way to go. To find these, connect with investor focused agents and wholesalers in your local market. Build relationships and things should start going your way.
2 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Jakob Mikhitarian:
  
  @John Russo I've heard that cash flow is pretty tight, so going to markets with high cap rate areas are your best chance to find cash flowing properties. The typical saying in real estate is you make the most on the buy, so if you're able to find a good deal off market, that's the way to go. To find these, connect with investor focused agents and wholesalers in your local market. Build relationships and things should start going your way.
  Great advice, thank you Jakob.
  1 Reply
Allie McAlister
Memphis, TN · Member since 2024 · 180 posts · 223 votes
1y
Hey @John Russo
Welcome to Bigger Pockets! What markets are you taking a look at? I'm an investor-focused Realtor based in Memphis, TN and we regularly see properties that are meeting the 1% Rule or above and producing positive cash flow. You may be in a market with too high of an entry point to rent ratio, and may want to redirect your attention to markets like Memphis if you're focused on cash flow.
Happy to dive further into this with you. Best of luck!
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Allie McAlister:
  
  Hey @John Russo
  Welcome to Bigger Pockets! What markets are you taking a look at? I'm an investor-focused Realtor based in Memphis, TN and we regularly see properties that are meeting the 1% Rule or above and producing positive cash flow. You may be in a market with too high of an entry point to rent ratio, and may want to redirect your attention to markets like Memphis if you're focused on cash flow.
  Happy to dive further into this with you. Best of luck!
  
  I've been looking in Tennessee, Georgia, and Oklahoma, but not yet in Memphis. I will be sure to check that out, since I think you are right about the too high of an entry point. Thanks!
  1 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
1y
@John Russo
What market are you based in and looking? If you are just relying on Zillow try and network with agents to get more deal flow of off-market opportunities. If that still doesn't yield any results, then I would look at investing out of state
[email protected]614-412-4565
Reafco-556 Reviews
View Page
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Patrick Drury:
  
  @John Russo
  What market are you based in and looking? If you are just relying on Zillow try and network with agents to get more deal flow of off-market opportunities. If that still doesn't yield any results, then I would look at investing out of state
  
  I'm based in Southern California and looking out of state in the Southeast, but I will look into networking with agents for off-market deals, thanks Patrick!
  0 Reply
Becca F.
Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
1y
@John Russo

I agree with the other comments about it being difficult to cash flow. You don't mention where you're located. Where are you looking for these long-term rentals for $200k-$300k? In your local area or within a 2 to 3 hour drive?

I would suggest NOT to buy out of state/unknown markets for sub $200k properties. I've posted about this many times. Any "cash flow on paper" will be eaten up by repairs, capital expenses and potential tenant issues. One of these days I'll add up the all money I've put in on these Class C type properties - so far I'm out $70,000+ with uncertainty about appreciation (I have a lot of passive activity losses on my tax returns so that's the only bright side).

I've talked to recent California investors who are buying high quality properties in appreciating markets, some are ok with some negative cash flow. To reduce negative cash flow: rent by the room (called co-living by some people), medium term rentals, STRs, new builds where the builder will offer a lower interest rate.

I wouldn't focus so much on cash flow but look at the overall big picture: economic growth of the area, rents increasing, appreciation, property tax increases reasonable or extremely high, insurance costs skyrocketing in those areas (or worse not being able to get insurance) and other factors.
6 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Becca F.:
  
  @John Russo
  
  I agree with the other comments about it being difficult to cash flow. You don't mention where you're located. Where are you looking for these long-term rentals for $200k-$300k? In your local area or within a 2 to 3 hour drive?
  
  I would suggest NOT to buy out of state/unknown markets for sub $200k properties. I've posted about this many times. Any "cash flow on paper" will be eaten up by repairs, capital expenses and potential tenant issues. One of these days I'll add up the all money I've put in on these Class C type properties - so far I'm out $70,000+ with uncertainty about appreciation (I have a lot of passive activity losses on my tax returns so that's the only bright side).
  
  I've talked to recent California investors who are buying high quality properties in appreciating markets, some are ok with some negative cash flow. To reduce negative cash flow: rent by the room (called co-living by some people), medium term rentals, STRs, new builds where the builder will offer a lower interest rate.
  
  I wouldn't focus so much on cash flow but look at the overall big picture: economic growth of the area, rents increasing, appreciation, property tax increases reasonable or extremely high, insurance costs skyrocketing in those areas (or worse not being able to get insurance) and other factors.
  
  I am located in Southern CA and looking for rentals in the Southeast. But thank you for Sharing Becca this was very insightful, I will focus on those points more in my search.
  1 Reply
- Becca F.
  Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
  1y
  Quote from @John Russo:
  
  Quote from @Becca F.:
  
  @John Russo
  
  I agree with the other comments about it being difficult to cash flow. You don't mention where you're located. Where are you looking for these long-term rentals for $200k-$300k? In your local area or within a 2 to 3 hour drive?
  
  I would suggest NOT to buy out of state/unknown markets for sub $200k properties. I've posted about this many times. Any "cash flow on paper" will be eaten up by repairs, capital expenses and potential tenant issues. One of these days I'll add up the all money I've put in on these Class C type properties - so far I'm out $70,000+ with uncertainty about appreciation (I have a lot of passive activity losses on my tax returns so that's the only bright side).
  
  I've talked to recent California investors who are buying high quality properties in appreciating markets, some are ok with some negative cash flow. To reduce negative cash flow: rent by the room (called co-living by some people), medium term rentals, STRs, new builds where the builder will offer a lower interest rate.
  
  I wouldn't focus so much on cash flow but look at the overall big picture: economic growth of the area, rents increasing, appreciation, property tax increases reasonable or extremely high, insurance costs skyrocketing in those areas (or worse not being able to get insurance) and other factors.
  
  I am located in Southern CA and looking for rentals in the Southeast. But thank you for Sharing Becca this was very insightful, I will focus on those points more in my search.
  
  Your other comment said you're looking in Tennessee, Georgia and Oklahoma. I know California investors who own properties in those markets but they either bought in that 2011-2018 time frame or are experienced investors. I considered Nashville (and Franklin and Brentwood) but it would have taken many months to research those markets. I did visit those areas long ago before I was interested in real estate.
  
  I invest in the Bay Area and Indianapolis metro area. For context I did live in Indiana and rented out my home Class A (in a nice suburb with great schools) when I moved back to CA. I made the mistake of buying Class C "cash flow on paper" - those are the homes I've put in $70,000+. My property tax increases were 17%, the last round on both the Class A and C, are reducing my cash flow.
  
  I've been looking in Nevada (Reno and Las Vegas), which has some of the lowest property taxes in the country. You would need to go above $200k to $300k on your search, unless you buy a distressed property to BRRRR (wouldn't recommend that to a first time investor). I won't even BRRRR out of state. I'm not an agent or work in the real estate industry in any way other than my own properties. I'm not trying to pitch a certain market but Nevada is where I would buy. Las Vegas is drivable from LA area or a short flight. Maybe look at new builds there.
  I would have plenty of cash reserves to pay for repairs, capital expenses, and vacancies. And to fly out to the areas you're considering and get to know those areas in detail. Don't buy sight unseen - that was my mistake too. The numbers might look good at first but add in increasing property taxes and insurance costs for each additional year. Then you have to balance how much you'll increase the rent each year. It depends on the market but if you increase the rent too much the tenant may say they can't afford it and move out. Now there's a vacancy.
  
  Feel free to DM me if you have further questions :)
  
  2 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Becca F.:
  
  Quote from @John Russo:
  
  Quote from @Becca F.:
  
  @John Russo
  
  I agree with the other comments about it being difficult to cash flow. You don't mention where you're located. Where are you looking for these long-term rentals for $200k-$300k? In your local area or within a 2 to 3 hour drive?
  
  I would suggest NOT to buy out of state/unknown markets for sub $200k properties. I've posted about this many times. Any "cash flow on paper" will be eaten up by repairs, capital expenses and potential tenant issues. One of these days I'll add up the all money I've put in on these Class C type properties - so far I'm out $70,000+ with uncertainty about appreciation (I have a lot of passive activity losses on my tax returns so that's the only bright side).
  
  I've talked to recent California investors who are buying high quality properties in appreciating markets, some are ok with some negative cash flow. To reduce negative cash flow: rent by the room (called co-living by some people), medium term rentals, STRs, new builds where the builder will offer a lower interest rate.
  
  I wouldn't focus so much on cash flow but look at the overall big picture: economic growth of the area, rents increasing, appreciation, property tax increases reasonable or extremely high, insurance costs skyrocketing in those areas (or worse not being able to get insurance) and other factors.
  
  I am located in Southern CA and looking for rentals in the Southeast. But thank you for Sharing Becca this was very insightful, I will focus on those points more in my search.
  
  Your other comment said you're looking in Tennessee, Georgia and Oklahoma. I know California investors who own properties in those markets but they either bought in that 2011-2018 time frame or are experienced investors. I considered Nashville (and Franklin and Brentwood) but it would have taken many months to research those markets. I did visit those areas long ago before I was interested in real estate.
  
  I invest in the Bay Area and Indianapolis metro area. For context I did live in Indiana and rented out my home Class A (in a nice suburb with great schools) when I moved back to CA. I made the mistake of buying Class C "cash flow on paper" - those are the homes I've put in $70,000+. My property tax increases were 17%, the last round on both the Class A and C, are reducing my cash flow.
  
  I've been looking in Nevada (Reno and Las Vegas), which has some of the lowest property taxes in the country. You would need to go above $200k to $300k on your search, unless you buy a distressed property to BRRRR (wouldn't recommend that to a first time investor). I won't even BRRRR out of state. I'm not an agent or work in the real estate industry in any way other than my own properties. I'm not trying to pitch a certain market but Nevada is where I would buy. Las Vegas is drivable from LA area or a short flight. Maybe look at new builds there.
  I would have plenty of cash reserves to pay for repairs, capital expenses, and vacancies. And to fly out to the areas you're considering and get to know those areas in detail. Don't buy sight unseen - that was my mistake too. The numbers might look good at first but add in increasing property taxes and insurance costs for each additional year. Then you have to balance how much you'll increase the rent each year. It depends on the market but if you increase the rent too much the tenant may say they can't afford it and move out. Now there's a vacancy.
  
  Feel free to DM me if you have further questions :)
  
  Hi Becca, I really appreciate all the great advice, very eye-opening since I haven't considered all these things. Have been looking in Las Vegas because of proximity, its still on my list but not sure if I should buy properties there because of higher cost and therefore less money to use for other properties in the future.
  0 Reply
- Becca F.
  Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
  1y
  Quote from @John Russo:
  
  Quote from @Becca F.:
  
  Quote from @John Russo:
  
  Quote from @Becca F.:
  
  @John Russo
  
  I agree with the other comments about it being difficult to cash flow. You don't mention where you're located. Where are you looking for these long-term rentals for $200k-$300k? In your local area or within a 2 to 3 hour drive?
  
  I would suggest NOT to buy out of state/unknown markets for sub $200k properties. I've posted about this many times. Any "cash flow on paper" will be eaten up by repairs, capital expenses and potential tenant issues. One of these days I'll add up the all money I've put in on these Class C type properties - so far I'm out $70,000+ with uncertainty about appreciation (I have a lot of passive activity losses on my tax returns so that's the only bright side).
  
  I've talked to recent California investors who are buying high quality properties in appreciating markets, some are ok with some negative cash flow. To reduce negative cash flow: rent by the room (called co-living by some people), medium term rentals, STRs, new builds where the builder will offer a lower interest rate.
  
  I wouldn't focus so much on cash flow but look at the overall big picture: economic growth of the area, rents increasing, appreciation, property tax increases reasonable or extremely high, insurance costs skyrocketing in those areas (or worse not being able to get insurance) and other factors.
  
  I am located in Southern CA and looking for rentals in the Southeast. But thank you for Sharing Becca this was very insightful, I will focus on those points more in my search.
  
  Your other comment said you're looking in Tennessee, Georgia and Oklahoma. I know California investors who own properties in those markets but they either bought in that 2011-2018 time frame or are experienced investors. I considered Nashville (and Franklin and Brentwood) but it would have taken many months to research those markets. I did visit those areas long ago before I was interested in real estate.
  
  I invest in the Bay Area and Indianapolis metro area. For context I did live in Indiana and rented out my home Class A (in a nice suburb with great schools) when I moved back to CA. I made the mistake of buying Class C "cash flow on paper" - those are the homes I've put in $70,000+. My property tax increases were 17%, the last round on both the Class A and C, are reducing my cash flow.
  
  I've been looking in Nevada (Reno and Las Vegas), which has some of the lowest property taxes in the country. You would need to go above $200k to $300k on your search, unless you buy a distressed property to BRRRR (wouldn't recommend that to a first time investor). I won't even BRRRR out of state. I'm not an agent or work in the real estate industry in any way other than my own properties. I'm not trying to pitch a certain market but Nevada is where I would buy. Las Vegas is drivable from LA area or a short flight. Maybe look at new builds there.
  I would have plenty of cash reserves to pay for repairs, capital expenses, and vacancies. And to fly out to the areas you're considering and get to know those areas in detail. Don't buy sight unseen - that was my mistake too. The numbers might look good at first but add in increasing property taxes and insurance costs for each additional year. Then you have to balance how much you'll increase the rent each year. It depends on the market but if you increase the rent too much the tenant may say they can't afford it and move out. Now there's a vacancy.
  
  Feel free to DM me if you have further questions :)
  
  Hi Becca, I really appreciate all the great advice, very eye-opening since I haven't considered all these things. Have been looking in Las Vegas because of proximity, its still on my list but not sure if I should buy properties there because of higher cost and therefore less money to use for other properties in the future.
  
  I talked to a few California investors who bought in Vegas and their different strategies as well as strategies from agents from Vegas to reduce the negative cash flow issue (not eliminate it). I can also give you contact information, which I don't want to post publicly on a forum.
  I also know two CA investors who bought in Utah, both new builds. I can also share numbers with you in my DM.
  
  Rather than typing out a 5 page essay on here, could you DM me? :)
  0 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1y
Quote from @John Russo:

Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
Thanks!
Hey John, welcome to BP — totally get where you're coming from. A lot of new investors are hitting that same wall right now with high interest rates and rising prices making it tough to find properties that cash flow, especially just using Zillow or Redfin. It's not that you're doing anything wrong — the truth is that most MLS deals in today's market don't cash flow right out of the gate unless you're targeting the right markets, getting creative, or digging off-market.

One market you might want to consider is Columbus, Ohio. I moved here from Portland in 2020 and now own 10+ rentals, and I’ve helped a lot of out-of-state investors find solid long-term rentals here that still hit the 1% rule. Columbus is landlord-friendly, still relatively affordable (you can find good deals in the $130K–$180K range), and it’s growing fast with massive development from Intel, Google, Amazon, Honda, and more. It’s one of those rare spots where you can still cash flow and ride the appreciation wave.

If you're only looking on-market, the best deals often go quick — or they need a little work to bring them to cash flow levels. That's where off-market deals, agent networks, and direct-to-seller strategies come in. You can also look into value-add deals where rents are under market or where a light rehab can boost cash flow. Another tip: connect with investor-friendly agents who work with BRRRR or out-of-state clients — they often have leads before they hit the MLS.

You're not alone — this market is tougher, but there’s still opportunity out there with the right approach. Happy to connect and answer any questions you have!
[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9120 Reviews
Website View Page
5 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Jimmy Lieu:
  
  Quote from @John Russo:
  
  Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
  I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
  This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
  Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
  Thanks!
  Hey John, welcome to BP — totally get where you're coming from. A lot of new investors are hitting that same wall right now with high interest rates and rising prices making it tough to find properties that cash flow, especially just using Zillow or Redfin. It's not that you're doing anything wrong — the truth is that most MLS deals in today's market don't cash flow right out of the gate unless you're targeting the right markets, getting creative, or digging off-market.
  
  One market you might want to consider is Columbus, Ohio. I moved here from Portland in 2020 and now own 10+ rentals, and I’ve helped a lot of out-of-state investors find solid long-term rentals here that still hit the 1% rule. Columbus is landlord-friendly, still relatively affordable (you can find good deals in the $130K–$180K range), and it’s growing fast with massive development from Intel, Google, Amazon, Honda, and more. It’s one of those rare spots where you can still cash flow and ride the appreciation wave.
  
  If you're only looking on-market, the best deals often go quick — or they need a little work to bring them to cash flow levels. That's where off-market deals, agent networks, and direct-to-seller strategies come in. You can also look into value-add deals where rents are under market or where a light rehab can boost cash flow. Another tip: connect with investor-friendly agents who work with BRRRR or out-of-state clients — they often have leads before they hit the MLS.
  
  You're not alone — this market is tougher, but there’s still opportunity out there with the right approach. Happy to connect and answer any questions you have!
  
  Hi Jimmy, I will definitely look into Columbus since I haven't been. Thank you for all of this advice it is very insightful and helpful.
  0 Reply
Andre Brock
Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes
1y
Start looking off market and maybe adding some creative financing to your toolbox can help when you come across those potential deals.
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Andre Brock:
  
  Start looking off market and maybe adding some creative financing to your toolbox can help when you come across those potential deals.
  
  Thanks Andre, will do.
  0 Reply

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

@John Russo

The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts. This caused a historically unique opportunity for investors - they could buy Class A properties and immediately cashflow when renting them out.

This couldn't last forever, and it didn't, as excited new investors drove up prices.

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.

So, the flood of new investors switched to buying Class B properties.

COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors. According to CoreLogic, in December of 2023, almost 30% of home sales were to investors!

Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.

In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.

If you don't believe us, try putting several Class D tenants in Class A apartment buildings and watch what happens. Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.

Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.

In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:

FICO Score	Pct of Population	Default Probability
800 or more	13.00%	1.00%
750-799	27.00%	1.00%
700-749	18.00%	4.40%
650-699	15.00%	8.90%
600-649	12.00%	15.80%
550-599	8.00%	22.50%
500-549	5.00%	28.40%
Less than 499	2.00%	41.00%

Source: Fair Isaac Company

According to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.

To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure. If only it was that easy. Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent. Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.

Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.

We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.

[email protected]248-209-6824

Logical Property Management4.9458 Reviews

Website View Page

4 Reply

John RussoPro Member

Member since 2025 · 38 posts · 24 votes

Quote from @Drew Sygit:

@John Russo

This couldn't last forever, and it didn't, as excited new investors drove up prices.

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.

So, the flood of new investors switched to buying Class B properties.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.

In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.

Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.

In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:

FICO Score	Pct of Population	Default Probability
800 or more	13.00%	1.00%
750-799	27.00%	1.00%
700-749	18.00%	4.40%
650-699	15.00%	8.90%
600-649	12.00%	15.80%
550-599	8.00%	22.50%
500-549	5.00%	28.40%
Less than 499	2.00%	41.00%

Source: Fair Isaac Company

According to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.

Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.

We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.

Hi Drew, this is great info, I haven't thought about the different class types in this detail but I definitely will refer back to this for help. Thanks for replying.

0 Reply

Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@John Russo
Can’t find a rental property that cashflows?

You’re probably thinking you have to offer asking price – not true!

To determine what to offer on a rental property:
- Determine reasonable market rent, NOT the highest!
- Deduct NEW property taxes after you buy
- Deduct home insurance costs
- Deduct maintenance percentage, typically 10%
- Deduct vacancy+tenant nonperformance percentage
  (we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)
- Deduct whatever dollar/percentage of cashflow you want
Now, what you have left over is the amount for debt service.

Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.

Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.

If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.

Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.

As long as the ARV checks out, this is the purchase price to offer.

It is probably significantly below the asking price. Who cares? If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.

You may have to make 10, 20 or even 100 offers to get one accepted at the price that meets your numbers.

This is what all investors did BEFORE the Great Real Estate Crash of 2008-2010.
[email protected]248-209-6824
Logical Property Management4.9458 Reviews
Website View Page
4 Reply
Ella Compton
Member since 2025 · 52 posts · 30 votes
1y
Hey John!
I recommend reaching out to real estate agents or wholesalers who specialize in off market deals and can provide detailed estimates of key financial metrics. Additionally, connecting with local investors in your area can be incredibly valuable. Hearing firsthand experiences may offer insights and guidance that can help you navigate your own investment journey more effectively. Best of luck!
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Ella Compton:
  
  Hey John!
  I recommend reaching out to real estate agents or wholesalers who specialize in off market deals and can provide detailed estimates of key financial metrics. Additionally, connecting with local investors in your area can be incredibly valuable. Hearing firsthand experiences may offer insights and guidance that can help you navigate your own investment journey more effectively. Best of luck!
  
  Thanks Ella, this is great advice.
  0 Reply
Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
1y
Quote from @John Russo:

Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
Thanks!

hard to find cash flow in decent areas unfortunately. There are good areas in Cincinnati that will be at 5, 6% ROI, but most people are looking for 10%+ because I guess that is what a video from 3 years ago told them. I always tell people, anything that has a 10%+ Coc ROI probably isn't in a great area. This can defer depending on sellers and their motivation, but those are few and far between. When I buy property, I go in good areas and expect it not to make cash flow for a year or 2. I want to be in good areas where I can see a solid future, or an area that has proven itself for years. So up and coming, as well as family friendly are my targets. Being in a good area will bring you better tenants, and tenants are everything. I would much rather negative cash flow with a great tenant, than positive cash flow with a bad one, because that bad one will eat your money up without thinking about it leaving you worse off. I could go on, just what I do and I think is the smarter route to go
[email protected]859-443-4952
Sam McCormack Realtor
View Page
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Sam McCormack:
  
  Quote from @John Russo:
  
  Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
  I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
  This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
  Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
  Thanks!
  
  hard to find cash flow in decent areas unfortunately. There are good areas in Cincinnati that will be at 5, 6% ROI, but most people are looking for 10%+ because I guess that is what a video from 3 years ago told them. I always tell people, anything that has a 10%+ Coc ROI probably isn't in a great area. This can defer depending on sellers and their motivation, but those are few and far between. When I buy property, I go in good areas and expect it not to make cash flow for a year or 2. I want to be in good areas where I can see a solid future, or an area that has proven itself for years. So up and coming, as well as family friendly are my targets. Being in a good area will bring you better tenants, and tenants are everything. I would much rather negative cash flow with a great tenant, than positive cash flow with a bad one, because that bad one will eat your money up without thinking about it leaving you worse off. I could go on, just what I do and I think is the smarter route to go
  
  That is a great point, thanks for sharing Sam.
  0 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
1y
Quote from @John Russo:

Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
Thanks!

How many offers have you written? Do not pay attention to the asking price. Just offer at prices that work for you
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
4 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
1y
@John Russo some really great detailed answers have been lent already so I am going to keep myself to really basic "straight-talk".

You gotta change what your doing because that world does NOT exist anymore, and it isn't coming back for a loooooong time.

We are at a pivot point of a 40yr cycle. It's a $$$$ cycle.

Past 40yrs $$$$ has been on various "sales". So combine $$$$ "on-sale" with growing cities and various housing blip's and it's made times where it was really easy to just buy a place, almost any place really, and make $ on the spread with a bit of time.

2008 was the biggest "blip" and $$$$ went on the biggest sale ever, it was literally free (for the banks that is). So yeah, it was CRAZY easy to buy almost anything, anywhere, and cash-flow right out the gate.

That is NOT normal. It's never been normal, literally ever. That wasn't just a once in a lifetime opportunity, it was a once in multiple lifetime's kind of thing.

It's NEVER coming back man, NEVER.

There is no cycle of such a thing, there is not 10 or 20yr or any of the YT BS idiot's out there are saying. That was literally a 1-time thing where all the stars just perfectly aligned in a crazy rare 1-off event.

So you gotta wrap your head around what IS todays reality, and where it's all going. Were now at the start of a different 40yr cycle.

Investing is now about INVESTING. Buying cash-flow is NOT investing, it isn't, that is business purchasing, Merger & Acquisitions, NOT investing.

INVESTING is buying Tesla at $225 because have reason to believe it's going too $325 in a year or two or whatever. To put it in a very simplified terms.

7 yrs ago, a person could have woke up after a 3 day Vegas bender, casually scrolled the MLS on there phone and randomly picked a property with the 4 working brain cells, and probably come out ok. That is NOT normal. That was CRAZY easy of a market.

Today, going forward, it's back to normal. Which means it's gonna take work, serious work, serious intelligence, focus, knowledge, insight, strategy. In short, back to a professional market.

Kind of like the stock market. After it fell so hard, any idiot could buy almost anything and it made $. Was it because that idiot was oh-so right? No, it was because of the unique situation right.

Today, now it's wicked hard, complicated, technical and requires a highly skilled and experienced pro to consistently make $ on wall street right.

Yeah, it's just the fact that the uber-easy market is gone-baby-GONE.

So the answer to it all is really simple once one understands the reality of it, you either;

- (A) Hire a skilled Pro

- (B) Become a skilled Pro

- (C) Spend rest of eternity starring in the rear view mirror or trying to put square peg's in round holes

- (D) Give up, walk away, quit......
8 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @James Hamling:
  
  @John Russo some really great detailed answers have been lent already so I am going to keep myself to really basic "straight-talk".
  
  You gotta change what your doing because that world does NOT exist anymore, and it isn't coming back for a loooooong time.
  
  We are at a pivot point of a 40yr cycle. It's a $$$$ cycle.
  
  Past 40yrs $$$$ has been on various "sales". So combine $$$$ "on-sale" with growing cities and various housing blip's and it's made times where it was really easy to just buy a place, almost any place really, and make $ on the spread with a bit of time.
  
  2008 was the biggest "blip" and $$$$ went on the biggest sale ever, it was literally free (for the banks that is). So yeah, it was CRAZY easy to buy almost anything, anywhere, and cash-flow right out the gate.
  
  That is NOT normal. It's never been normal, literally ever. That wasn't just a once in a lifetime opportunity, it was a once in multiple lifetime's kind of thing.
  
  It's NEVER coming back man, NEVER.
  
  There is no cycle of such a thing, there is not 10 or 20yr or any of the YT BS idiot's out there are saying. That was literally a 1-time thing where all the stars just perfectly aligned in a crazy rare 1-off event.
  
  So you gotta wrap your head around what IS todays reality, and where it's all going. Were now at the start of a different 40yr cycle.
  
  Investing is now about INVESTING. Buying cash-flow is NOT investing, it isn't, that is business purchasing, Merger & Acquisitions, NOT investing.
  
  INVESTING is buying Tesla at $225 because have reason to believe it's going too $325 in a year or two or whatever. To put it in a very simplified terms.
  
  7 yrs ago, a person could have woke up after a 3 day Vegas bender, casually scrolled the MLS on there phone and randomly picked a property with the 4 working brain cells, and probably come out ok. That is NOT normal. That was CRAZY easy of a market.
  
  Today, going forward, it's back to normal. Which means it's gonna take work, serious work, serious intelligence, focus, knowledge, insight, strategy. In short, back to a professional market.
  
  Kind of like the stock market. After it fell so hard, any idiot could buy almost anything and it made $. Was it because that idiot was oh-so right? No, it was because of the unique situation right.
  
  Today, now it's wicked hard, complicated, technical and requires a highly skilled and experienced pro to consistently make $ on wall street right.
  
  Yeah, it's just the fact that the uber-easy market is gone-baby-GONE.
  
  So the answer to it all is really simple once one understands the reality of it, you either;
  
  - (A) Hire a skilled Pro
  
  - (B) Become a skilled Pro
  
  - (C) Spend rest of eternity starring in the rear view mirror or trying to put square peg's in round holes
  
  - (D) Give up, walk away, quit......
  
  Very insightful. Thanks for the response James, I will consider those options.
  0 Reply
Ozzy SirimsiBusiness Member
Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
1y
Quote from @John Russo:

Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
Thanks!

It is hard to find deals on zilow mls etc.... but market is softening, more houses are staying oin the market.
You can identify houses that has been sitting on the market for a while and make lower offers on them, I am currently working on one actually, offered 50K low and so far we are negotiating , also you can start connecting all the wholesalers out there unless you want to find your own deals by doing drive by dollar, or cold calling etc...
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Ozzy Sirimsi:
  
  Quote from @John Russo:
  
  Hi there, I just wanted to come on here and see how everyone is able to find properties currently that will cash flow?
  I am just starting out my real estate journey and I am looking for long term rentals at around 200-300k. I've done research on different areas that are supposed to be good for cash flow, however, when I run analyses with the rental property calculator on homes in these areas, none of them are cash flowing within the first few years.
  This is honestly pretty disappointing and I'm not sure if I'm doing something wrong or if people are unable to find cash flowing properties on Zillow, Redfin, and the MLS during this point in time because of interest.
  Any advice on what I should do to get into this field with cash flowing properties or if I should change my strategy or look off market? And if so, how do I do that?
  Thanks!
  
  It is hard to find deals on zilow mls etc.... but market is softening, more houses are staying oin the market.
  You can identify houses that has been sitting on the market for a while and make lower offers on them, I am currently working on one actually, offered 50K low and so far we are negotiating , also you can start connecting all the wholesalers out there unless you want to find your own deals by doing drive by dollar, or cold calling etc...
  
  This is a good idea I will start looking for those types of home. Thanks for the advice Ozzy.
  0 Reply
Joseph Bui
Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
1y
It’s all about the market you invest in. Outside of Midwest markets it going to be very hard to find cash flow (assuming a mortgage with 20% down). I have a portfolio across Memphis and Detroit and they all cash flow. Happy to share resources if you are interested.
1 Reply
- John RussoPro Member
  OP
  Member since 2025 · 38 posts · 24 votes
  1y
  Quote from @Joseph Bui:
  
  It’s all about the market you invest in. Outside of Midwest markets it going to be very hard to find cash flow (assuming a mortgage with 20% down). I have a portfolio across Memphis and Detroit and they all cash flow. Happy to share resources if you are interested.
  
  Noted, I will look into those areas, thanks Joseph.
  0 Reply
John RussoPro Member
OP
Member since 2025 · 38 posts · 24 votes
1y
Thanks Nicholas, I appreciate the reply and info. Unfortunately house hacking is not an option for me at the moment but I will look more into the BRRRR method.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.