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?
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.
Investor · Ohio & Fort Lauderdale · Member since 2021 · 75 posts · 50 votes
1y
Totally understand where you're coming from, it's tough to find strong cash flow on market especially with interest rates.
Many investors are looking off-market OR partnering with firms already buying deals in cash flowing markets. Passive investing is one path where you invest capital into larger deals alongside experienced operators without having to run things yourself.
If your goal is cash flow but you’re short on time / deal flow, might be worth exploring that route while learning the ropes.
@John Russo Good question. Most on-market properties aren’t cash flowing right now, especially with high interest rates.
One screening trick: start with your desired cash-on-cash return and work backward. If you’re putting $50K down and want a 10% return, that’s $5K/year or ~$417/mo in cash flow.
In other words, filter for properties that meet the X% rule based on market rents from your initial analysis. If they don’t come close, move on. If they do, dig deeper.
Over time, you’ll learn what your “% rule” is — maybe it’s 1.2% or 1.4% in your market, then you figure out an offer from there (might be emarassingly low). Most true cash-flowing deals now come from off-market leads, creative financing, or value-add plays.
Keep running the numbers — it’s the best way to practice.
@John Russo Good question. Most on-market properties aren’t cash flowing right now, especially with high interest rates.
One screening trick: start with your desired cash-on-cash return and work backward. If you’re putting $50K down and want a 10% return, that’s $5K/year or ~$417/mo in cash flow.
In other words, filter for properties that meet the X% rule based on market rents from your initial analysis. If they don’t come close, move on. If they do, dig deeper.
Over time, you’ll learn what your “% rule” is — maybe it’s 1.2% or 1.4% in your market, then you figure out an offer from there (might be emarassingly low). Most true cash-flowing deals now come from off-market leads, creative financing, or value-add plays.
Keep running the numbers — it’s the best way to practice.
Hi Josh, thank you for the advice! I will keep running numbers for practice and look into the true cash flowing deals.
Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
1y
Unfortunately, that is just how things are. It's hard to find. If you do find them, they are probably in class D areas they tell you to stay away from on here. Now, many just are cool with having negative cashflow and waiting for appreciation and some cashflow years later. with a class B. Not my style but I get it. I'm well versed in low-income areas. I don't care for them that much anymore. However, if one falls in my lap, I know how to work it for a while until I may decide to sell. Also, since I understand the flip game, I can get a rundown property in a decent area. I add value, rent over years and when the appreciation pops, I sell. Recently, I got a duplex in a class B area overall. However, my little pocket is full of renters and has characteristics of a class C. It sold every year because those investors did not understand how to work that community. I came in and got instant cashflow, because they wanted out as usual.
Unfortunately, that is just how things are. It's hard to find. If you do find them, they are probably in class D areas they tell you to stay away from on here. Now, many just are cool with having negative cashflow and waiting for appreciation and some cashflow years later. with a class B. Not my style but I get it. I'm well versed in low-income areas. I don't care for them that much anymore. However, if one falls in my lap, I know how to work it for a while until I may decide to sell. Also, since I understand the flip game, I can get a rundown property in a decent area. I add value, rent over years and when the appreciation pops, I sell. Recently, I got a duplex in a class B area overall. However, my little pocket is full of renters and has characteristics of a class C. It sold every year because those investors did not understand how to work that community. I came in and got instant cashflow, because they wanted out as usual.
Realtor · Oklahoma City · Member since 2020 · 258 posts · 139 votes
1y
@John Russo, yeah most within that price range will most likely not pencil out in returns if you're buying a rent ready property or even some on market that need work.
I'd try to get in contact with as many wholesalers as possible, join Facebook groups for local real estate investors & look for off market deals.
if it's a value add, where you can get it for a low price then make repairs, may just barely make work, but most likely not.
In most areas within that price range, it'll most likely not work unless you are house hacking, assuming a loan w/ a low interest rate & lower payment & or are just banking on appreciation & loan paydown.
Can also consider other things too. Private lending, building up conservative investments, educstion, etc.
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, great questions! You're not alone seeing slim or negative cash flow on $200K-300K rentals, especially on-market at today's rates. In Memphis, cash flow is still possible, but it often requires either buying at a deeper discount and adding value through the BRRRR method or shifting to lower price ranges where rent-to-price ratios are stronger. A $250K turnkey in an A- area may rent for $1,600-1,800 here, which won't cash flow well with 7-8% interest unless you put a large down payment, but a BRRRR in the $90-160K range in a solid B/C area can rent for $1,200-1,500/month while allowing you to refinance most or all of your cash back out and keep it moving, letting you stretch your capital further and faster than the "safer" 1% rule strategy on turnkey deals. It's true Zillow and Redfin often won't show the deals you need to make these numbers work, so many investors here find BRRRR deals through wholesalers, direct-to-seller marketing, or investor-focused agents who watch for pre-foreclosures and outdated listings. Also, short-term rentals are growing in Memphis, and a recent client of mine signed up with a local PM I'm partnered with (they only handle STRs) and has been making $5,000/month on just one property, which is another path to achieving cash flow if you're open to an active strategy. Happy to share more if you want example numbers from recent BRRRRs to calibrate expectations and see if Memphis fits your goals as you get started.
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
1y
Hey @John Russo, I appreciate your persistence in navigating the market — it’s definitely a tough time for first time investors. Once you start getting into the $200K to $300K price range, the cash flow tends to be less attractive compared to lower priced properties.
That said, these midrange homes often offer more predictability — you’re more likely to attract long term residents who’ll treat the place like their own, which can save you a lot of headaches down the line.
There are still properties in this range that won’t leave you cash flow negative — it just takes some strategy in knowing where to look and what to watch out for. Happy to connect and share what I’ve learned about finding these kinds of deals.
You're definitely not alone—finding true cash flow deals on the MLS right now is tough, especially with higher interest rates. Most on-market properties are priced for retail buyers, not investors.
A few quick tips:
✅ Start looking off-market (driving for dollars, direct mail, or using wholesalers).
✅ Expand your search to lower-cost markets with stronger rent-to-price ratios.
✅ Consider house hacking as a first step—owner-occupy a multi-unit with low down.
✅ And yes, sometimes it’s okay if a deal isn’t cash flowing day one if you have clear value-add upside.
You’re on the right path by running the numbers and asking questions—keep going!
Real Estate Agent · Endicott, NY · Member since 2023 · 36 posts · 19 votes
1y
What you're experiencing is completely normal, especially in today's interest rate environment. Many new investors are finding that properties listed on Zillow, Redfin, or the MLS often don't cash flow right away, particularly in popular or "hot" markets. These platforms are highly visible, so you're typically competing with owner-occupants and other investors, which drives up prices and compresses returns.
To improve your chances of finding a cash-flowing deal, consider shifting your strategy toward off-market properties. This is where many investors are finding better margins. You can start by networking with wholesalers, local real estate agents who specialize in investment properties, or even driving through neighborhoods looking for distressed or vacant homes and reaching out directly to the owners (often called “driving for dollars”). Joining local real estate investor meetups or BiggerPockets forums is also a great way to make connections and get referrals to off-market deals.
Additionally, you might look into value-add properties—homes that need some cosmetic updates or better management. These may not cash flow on day one, but with strategic improvements, rents can increase, and returns can improve over time. Don’t be discouraged by early numbers not working; sometimes the best deals are created, not found.
Keep running your numbers, refining your criteria, and consider widening your geographic focus if you're locked into a high-cost area. Patience, persistence, and creativity are key in today’s market. You’re asking the right questions—stay the course!
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
1y
@Nicholas L. it's not impossible. I just did a 2 unit in Little Village Chicago that if I had BRRR'd out would have cash flowed $1000 over PITI with $0 in. I ended up flipping it instead but the deals are out there if it's a multi unit. This one had a 3/2 duplex up unit that rented high at $2100. The high rent layout is needed. The 2 units with just 2x 2/1 units won't cash flow at all full leverage. Single families I also haven't seen work in good areas. On our north side which is nicest side of my city only 4 units can still be BRRRd with positive cash flow, the 2 units all negative cash flow north side now.
yes, totally agree it's not impossible, but especially for new investors it's extremely difficult. they're just not going to do a home run BRRRR on their first deal. and what you see in the forums really comes down to expectations.
it's the difference between buying a solid long term deal with expectations set that the furnace might break in year 2 and you might have a rough tenant turn in year 4, but if you hold for 25 years you'll come out ahead. versus, wanting to "cash flow" in month 1 and having your dreams crushed by that furnace replacement. same deal, two different sets of expectations.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
1y
The best way to find cash flowing properties is with a time machine...
Unfortunately now, it's very hard to make properties cash flow unless buying cash or with very low LTV loans. Multifamily is a bit easier (albeit still difficult) and there are other opportunities with STR and MTR as well as renting out by the room, house hacking, etc. But cash flow is real tough these days.
The best way to find cash flowing properties is with a time machine...
Unfortunately now, it's very hard to make properties cash flow unless buying cash or with very low LTV loans. Multifamily is a bit easier (albeit still difficult) and there are other opportunities with STR and MTR as well as renting out by the room, house hacking, etc. But cash flow is real tough these days.
Hahaha! I was going to say the same thing, when someone tells me they want to cashflow on day 1...have you tried looking in 2019?
The best way to find cash flowing properties is with a time machine...
Unfortunately now, it's very hard to make properties cash flow unless buying cash or with very low LTV loans. Multifamily is a bit easier (albeit still difficult) and there are other opportunities with STR and MTR as well as renting out by the room, house hacking, etc. But cash flow is real tough these days.
Hahaha! I was going to say the same thing, when someone tells me they want to cashflow on day 1...have you tried looking in 2019?
2019? Bruh, I'm all about going back to 2011. I mean c'mon, if you're gonna time travel, do it right
Real Estate Agent · Metro Detroit, MI · Member since 2018 · 612 posts · 666 votes
1y
Monthly cashflow is definitely still attainable. It’s not what it was in 2021, but if you know where to look it’s still possible to find good deals that pencil out. That being said, you need to go into it with realistic expectations. If your goal is a turnkey property in a grade A location with 15% COCROI, then yes it’s going to be a lot harder to find right now.
I wouldn’t personally put too much emphasis on your interest rate though. Lower interest rates can end up driving prices up even more. You can’t change the price you pay, but you can change your interest rate by refinancing later on down the line when they’re lower.
Metro Detroit has what most investors want. Couple hundred bucks a door monthly cash flow, solid ROI, and yes plenty appreciation (#1 appreciating city 2023). It still gets skipped over often because many invest in Detroit wrong and get burnt. I'll save you a ton of time. Don't get caught in the $10k-$40k house trap. Just buy the $100k house and you'll be fine.
I personally make well over $100k/yr cash flow from my portfolio here. All of which, I’ve purchased within the last 5 years.
There are 2 types of people who dog on Detroit..
1. People who don't actually own property in Detroit
2. People who did it wrong and weren't able to execute.
If you do it right, it’s arguably the best market to invest.
Purchase: $80k-$130k
Rent: $1100-$1500 (no rent control in MI)
1% rule: .9%-1.4% rule deals
Coc ROI: 4-12%
Total ROI: 20-40%
Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)
Appreciation: 3-10%+ (has been double digit for a decade)
Location: C+, B-
These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.
We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.
The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those.
We have found what works and repeat it as much as funds allow.
Detroit has one the highest rent to price ratios in the country…and we focus on the best balance of price/location within the area.
Happy to share a picture of my portfolio if you/anyone is curious.
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 463 posts · 253 votes
1y
Hi John-
Great Question! You asked where to find cash flowing properties as you are having a hard time finding properties that cashflow in your $200-300K budget.
Agree, finding cash flowing properties is tough these days.
However, Michigan has many cash flowing markets at or below your budget, with strong rental demand, rent growth, and appreciation.
We have excellent, local property managers in these markets who can maintain the property, increase the value of your property, and reduce tenant turnover which maximizes your return on investment.
Honestly it's a process. I am new to investing myself. And after 7 months of searching,working with multiple realtors,and many many properties analyzing from all directions.
I'm just now finding properties that cash flow even if it's just a small amount. It's a numbers game and it take patience.
My recommendation is to connect with realtors,other investors,property managers from here.
As well as always continue to be a student and learn all you can from many sources.
