Buying rental properties in a flat or down market
Looking for some advice on buying my next property.
I live in Connecticut where property prices are flat at best, and probably declining a bit. I cannot really see myself trying to manage an out of state property, so stuck with Connecticut houses if going to invest. So should someone buy a cash flow yielding property in a market that is flat or declining?
A typical example is a $330K Duplex, with combined $3000/month rent. $8K for property tax and $1K for insurance. Total P&I plus taxes and insurance is $1800/month. So the cash flow is good. But is it worth it if you don't believe the property will retain its value?
Also, as far as exiting the property someday, Connecticut charges a 1% conveyance fee when selling the property.