Real Estate Agent · Boston, MA · Member since 2025 · 89 posts · 28 votes
If you had to choose in today’s Massachusetts-area market, would you take better cash flow farther out or lower cash flow in a stronger location? What’s winning for you right now?
I buy sub-$100K single-family houses in Memphis that rent for $1,395 to $1,950 on Section 8. That's the 1% rule working. A "strong location" that cash flows $200 a month is a hope-and-pray strategy. You're betting on appreciation to bail you out.
I'd rather have $600 a month in real cash flow from a solid working-class neighborhood than $200 a month in a prime zip code. Location matters for tenant quality and vacancy, but it doesn't pay the mortgage. Cash flow does.
Run the 1% rule. If the rent doesn't hit it, the location isn't strong enough for an investor, no matter how nice the street looks.