Best Markets for immediate cash flow

16 Replies

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!  

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.

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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.  

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?

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!

@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.

@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.

@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.

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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. 

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.