Where to get rentals for CASHFLOW

Question

Hey guys, I am selling a single family rental I have in the seattlw area, and I am looking at about $60k (after tax and what not). I am wanting to use this as a down payment on another one or two (or more) single family rentals that will cashflow. I know the Seattle area is hard to do and I've heard good things about the Memphis TN area too. What are your guys thoughts on places that will be the best for this? Thinking about TX, KY, TN, NC. Any others? Let me know all thoughts.

Jon Holdman · Answer

Andrew  Sanders, nevertheless, you'll need to post in the Marketplace in order for people to offer you properties.  You can always search on realtor.com for listings in any area.  I recommend that, given some ideas of specific areas, you do some searching on realtor.com to get an idea of the type of properties available and on craigslist and rentometer.com to get an idea of rents.

Andrew Sanders · Answer

I just wanted to see them for an idea of condition size location and price I'm looking at.

Jon Holdman · Answer

Folks, this is NOT the place for offering properties.  If you offer up a location to buy, explain WHY that's a good place to buy.  Because you have properties for sale in that area is, in fact, not a good reason.

Andrew  Sanders, if you're actually looking for properties, rather than advice on where to invest, please post in the Marketplace forum.

Joseph M. · Answer

Florida seems like it has some good opportunities for cash flow . Tampa and Jacksonville areas and some others . Rents seem pretty good versus purchase prices and it seems there is upside because of the high number of foreclosures values still look to be a fraction of what values were . I could see values picking up significantly higher than Phoenix or Las Vegas did once foreclosures are worked out of the system .

Andrew Sanders · Answer

Any places in IN I should check out besides Indianapolis?

Andrew Sanders · Answer

I'm definitely leaning towards a multiplex 3+ units

Dawn Anastasi · Answer

Also Milwaukee is a good area if you are looking to invest in rentals.  If you are just looking at using the $60K for down payments, you could get maybe 4-5 SFH.  If you're looking to use the $60K as the whole purchase price then you could get only 2 SFH or one duplex.

Chris L. · Answer

Hi Andrew,
Brian is correct.  Property management is the key.  (I am NOT a property manager so I am not trying to sell you anything.  I am just answering the question about what areas provide good cash flow)

These units rent for $500 to $600 per month.  Due to lower property taxes, (average about $250 per year per house) the total expenses are closer to 45% average as opposed to the 50%.  We have enough houses to have a good average.  Obviously with just a couple of rentals, your results can vary greatly from month to month.

I would be happy to provide more information and introduce you to competent property managers.

Good luck to you.

Chris

Andrew Sanders · Answer

Chris, 
Are you meaning you have 500-600 cash flow? Also not necessarily wanting $25-30k for the WHOLE place just want to put down good money and have a small mortgage payment so I can get equity and cashflow maybe? Do you think I could do one 4-plex for $60k? What cash flow are you seeing with yours and what was your purchase price r something comparable?

Andrew Sanders · Answer

I'm not looking for one for $30k, I agree, probably not the best idea! Haha I'm wanting to do a conversional purchase, something around $100k I'm guessing. I want positive cashflow (few hundred) as well equity build up from renter and hopefully appreciation from market.