What areas are you buying in for cash flow?

Question

Hello,

Curious to see what areas people are buying in right now for cash flow properties. Currently my team has been looking in Maine but might have to expand that search because we haven't found the right one and so we were wondering what areas have your interests and why? Some other places we were going to look into were Alabama, maybe Ohio, and New Hampshire but property tax is really high in Ohio and new Hampshire so we are leaning more towards Alabama. Anyways, would be happy to hear your thoughts on what areas might be good to look into or really any advice on how to spot the right investment areas. Thanks!

Eileen McCue · Answer

I invest in mid-coast Maine and have found cash flowing deals. Contractors can be pricey here and taxes are higher, but rents are good, demand is very high, so vacancy is a non-issue and we get our pick of great tenants. Also, appreciation, while not a guarantee of course, is likely to continue to be strong here.

The market is very tight so we are not even looking at anything that gets listed unless it has been sitting for a while and has lots of deferred maintenance and opportunity for forced appreciation.

We have found that purchasing properties where rents are below market and then doing rent repair, while it doesn't look like a cash flowing deal at purchase, will typically have good cashflow within a year or two. We are long-term investors, so purchasing a property and taking a year or two to stabilize has worked well for us.

Winston Covington · Answer

Check into Huntsville, Alabama along with the other communities in Madison County. You will find a growing population, a diverse economy, affordable housing, good schools and good old fashioned Southern hospitality. In addition, Alabama has the 2nd lowest property taxes in the United States and is pro landlord.

Bethany Turon · Answer

@Daniel Ortega You definitely need to go farther North! Sanford, Lewiston, Auburn, Lisbon, Gardiner, Augusta, Waterville, Fairfield, and I know there are people who have made a good living for themselves in the Bangor area, I just don’t know that area as well myself.

Carl Hebert · Answer

@Daniel Ortega What type of properties are you looking for? As @Bethany Turon mentioned there are properties that cash flow in Maine. I just purchased one a couple of months ago in Lewiston that cashflows very well, but I deal in multifamily's. If you focus on just the coast and southern Maine you will have a hard time finding a good cashflowing property. Look inland and you will find quite a few, just be prepared to bid at market and bid fast as they fly off the shelf now.

Good luck and welcome!

Stephen Brown · Answer

Which do you use?

I've also been seeing people buying off LLC's to avoid the increase in taxes when transferring ownership.

Bethany Turon · Answer

@Daniel Ortega I’m definitely happy to be in Maine for great cash flow. Why is it not working for you?

Michael Picher · Answer

@Daniel Ortega In Southern Maine and along the Coast it's pretty tough to find properties that cash flow well. Need to look inland and North a bit. Let me know if I can help.

Mike

Realtor

Thunder Hill Group - Realty of Maine

Harry Frazier · Answer

@Daniel Ortega Northern Kentucky which is right across the river from Cincinnati. Market is exploding.

Winston Covington · Answer

Yes and I have both positive cash flow and a good appreciation rate.

Daniel Ortega · Answer

Will be looking into Hunstville! Thanks for the info. Have you invested there?

What areas are you buying in for cash flow?

What areas are you buying in for cash flow?

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