How to Find Cash Flow Properties?

Question

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!

Nicholas L. · Answer

@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

Aristotle Kumpis · Answer

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.

Evan Hopple · Answer

@John RussoTry 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.

Ned Carey · Answer

@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.

Jakob Mikhitarian · Answer

@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.

Wale Lawal · Answer

@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.

Charles Clark · Answer

@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!

Seth McGathey · Answer

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.

Preston Dean · Answer

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!

Nicholas L. · Answer

@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.

How to Find Cash Flow Properties?

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