Purchasing new homes to rent
Hey! I was recently talking to a realtor and we were discussing homes I could buy for rentals. She informed me that she had several investors that were simply buying up whole streets of the big home builders neighborhoods (DSLD, Adams Homes, Etc.), and renting them for positive cash flow. I did a little research myself with homes for sale at retail on the MLS and found that for specific areas around where I live, it seems that for a home under $120k that is at or near move in ready, would cash flow around $400-$500 / month (after management, taxes, insurance).
This seems like a revelation to me?! I have a great relationship with a local bank that focuses on investors, and we have done several deals together. It seems as though I could snatch up 7 or 8 properties nearly immediately and increase my monthly cash flow around 3k.
I did some searching on this site and couldn't find a post on this exact scenario. Is there anyone out there doing this? Is there some hidden item I am missing? It seems almost too good to be true. I already have some rentals and with that extra coming in, I could start really paying mortgages off fast (<2 years on existing rentals), which would only free up that much more money.
Thanks for any insight!