Best Markets for immediate cash flow

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Best Markets for immediate cash flow

Thomas Cheek
San Diego, CA · Member since 2016 · 14 posts · 4 votes

I'm getting started in the investment world and wanted suggestions on what the best markets were to buy and get quick cash flow.  I'm looking for secondary markets where the properties aren't as expensive.  Thanks for your help!  

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Darrin CareyPro Member
Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
10y

@Thomas Cheek A lot of people from California, other states and countries invest in Dayton Ohio for the current cashflow. To successfully invest out of state, there are a few things you need to do. 

  • You MUST have a good property manager.
  • You need to visit the area BEFORE buying your first property. An airline ticket and hotel area cheap compared to a bad deal.
  • You need to identify the types of neighborhoods you are willing to invest in. Better neighborhoods, lower return (but still good), lower drama. Lessor neighborhoods, potentially higher returns, higher drama.
  • You need to have some local people you can call when you need a hand, a property, or a referral.
  • You MUST have a good property manager. (That's on the list twice for a reason.)

I used to be an out of state investor. Those were the key elements I learned the hard way.

You still need to do all the normal Real Estate Investing items as if you were investing locally.

Best of luck. Feel free to call if you want to chat about the topic.

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  • Ed Emmons
    Specialist · Milford, ME · Member since 2016 · 630 posts · 378 votes
    10y

    Depending on what is around, condos, mobile homes and multi-family. My first choice would be a mobile home for low entry price and positive Cashflow but you are not likely to build equity. Condos are also good but check the bylaws or associations regulations closely. Look for investor clauses and capital expense assessments. They will appreciate if bought right.

    1Reply
  • Thomas Cheek
    OP
    San Diego, CA · Member since 2016 · 14 posts · 4 votes
    10y

    Thank you Ed.  Do you have any suggestions on the best areas around the united states for these types of purchases?  

    0Reply
  • Ed Emmons
    Specialist · Milford, ME · Member since 2016 · 630 posts · 378 votes
    10y

    If you are starting out, stay local or close enough that you can watch it. There is too much to research about a new area combined with little investment experience to be safe. You can manage your risk much easier locally.  

    0Reply
  • Thomas Cheek
    OP
    San Diego, CA · Member since 2016 · 14 posts · 4 votes
    10y

    Thank you again Ed.  We're from San Diego and the market over here is much too expensive to jump in at the moment.  If we are set on looking at other locations what pieces of advice would you suggest?

    0Reply
  • Justin R.
    Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Thomas Cheek:

    Thank you again Ed.  We're from San Diego and the market over here is much too expensive to jump in at the moment.  If we are set on looking at other locations what pieces of advice would you suggest?

    I'd suggest starting to look at places you have some sort of advantage in - you don't want to be the dumb out of state California guy who overpaid for the lipstick-on-a-pig property down the block.  Where else have you lived?  Do you have family around the country?  Friends or colleagues?  Affiliations or history or financial interests in anything anywhere else?  Basically, where do you have an advantage over any other random person who rolls into town?

    Do some research on the markets at the top of that list.  Compare those markets to the ones you see lots of people on BP trying to sell "cash flow" properties in: Memphis, Indianapolis, and Ohio all come to mind.

    Since you said you're just starting, my main piece of advice would be to define what you're planning to get out of buying this property.  Buying a single house thousands of miles away so you can make an extra $200 a month isn't gonna get you very far.  I would advise you to ask yourself: "Assuming I do this, what will I learn and what new doors will be open to me?"  

    Good luck!

    3Reply
  • Moris Reyes
    Riverside, CA · Member since 2015 · 9 posts · 1 vote
    10y
    Riverside, CA would be a good place to start.
    0Reply
  • Darrin CareyPro Member
    Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
    10y

    @Thomas Cheek A lot of people from California, other states and countries invest in Dayton Ohio for the current cashflow. To successfully invest out of state, there are a few things you need to do. 

    • You MUST have a good property manager.
    • You need to visit the area BEFORE buying your first property. An airline ticket and hotel area cheap compared to a bad deal.
    • You need to identify the types of neighborhoods you are willing to invest in. Better neighborhoods, lower return (but still good), lower drama. Lessor neighborhoods, potentially higher returns, higher drama.
    • You need to have some local people you can call when you need a hand, a property, or a referral.
    • You MUST have a good property manager. (That's on the list twice for a reason.)

    I used to be an out of state investor. Those were the key elements I learned the hard way.

    You still need to do all the normal Real Estate Investing items as if you were investing locally.

    Best of luck. Feel free to call if you want to chat about the topic.

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Thomas Cheek  here is a list of markets that are tertiary to consider

    1. Kokomo INd

    2. Crown POint IND

    3. Hammond IND

    4. Salem Oregon

    5. Lacy and Olympia WA

    6. Wenatchee WA  ( one of my favorites)

    7. Spokane WA 

    8. Meridian Idaho

    9. Vicksburg MS

    10 Hattisburg MS

    11. Summerville SC

    12. Rock Hill SC

    13. Easton PA

    14. Carson City NV

    15. Idaho Falls ID

    and on and on and on...

    I have invested in all but Idaho falls personally.

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    2Reply
  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    10y

    mobile could be good depending on your number you want to pay. Oceanside, ROmoland and Muriel's could be good. Have looked into national city?

    [email protected]
    0Reply
  • Mark Gallagher
    Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
    10y
    Thomas Cheek I can help with Easton PA and surrounding areas. Properties can be had "cheap" and the area is bustling with new construction and commercial development. Feel free to shoot me an email.
    0Reply
  • Zachary Smith
    Real Estate Broker · Victor, ID · Member since 2009 · 47 posts · 11 votes
    10y

    I have a rental in Idaho Falls that is pulling a 9.2 Cap.   You could probably do better since that was my first there. But there are some big employers there. 

    0Reply
  • Aaron Miley
    Investor · North Port, FL · Member since 2016 · 137 posts · 58 votes
    10y

    Nice! Glad to see Spokane on that list. We're a great market for investing.

    0Reply
  • Adrian Kutch
    Eagle, ID · Member since 2016 · 4 posts · 1 vote
    10y

    Hi I've just joined BP a couple of days ago while looking for real estate cash flow information. My wife and I recently moved from the SF Bay Area to Eagle Idaho.  I was a remodeling contractor there for the past thirty four years. While I have purchased a number of different primary properties, I have never bought rental properties.  I am very interested in the industry and trying to get as much information as I can. I have ended that carrer, and looking forward to starting a new one once I can do enough research. From what I see BP looks like a great place you gain a wealth of knowledge. 

    1Reply
  • Daniel P Willis
    Investor · Rexburg idaho · Member since 2016 · 68 posts · 18 votes
    10y

    I have a place in sugar city, which is basicly part of rexburg, and I'm renting out my manufactured home at a 21% cash on cash return. It would be higher but it was our house at first so we sunk money into it we didn't need. Rexburg is 45 min from Idaho Falls, Idaho and is the fastest growing city in idaho right now. The college is also planning on doubling its size over the next 7 years. I would suggest looking in that area, the trick is looking on the outside of rexburg so you don't over pay. 

    0Reply
  • Thomas Cheek
    OP
    San Diego, CA · Member since 2016 · 14 posts · 4 votes
    10y

    Awesome responses.  I appreciate the advice! 

    0Reply
  • Kevin FoxPro Member
    Real Estate Agent · San Diego, CA · Member since 2014 · 1k+ posts · 635 votes
    10y

    Hey @Thomas Cheek

    How much funds do you have available to invest? What cash-on-cash return percentage are you aiming for?

    0Reply
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