HOW TO KNOW WHICH MARKET CASH FLOW - FRIENDLY

Question

Hello,

I'm a 17 years old girl and I'm searching for duplex/fourplex properties with a budget of ~400K. should the population size of the market be big or small if my goal is to generate a good cash flow? I've been looking at properties in Orlando, Fl, and St. Louis, MO. I'm wondering if these 2 markets are good for generating cash flow.

Nathan Murith · Answer

Hi @Nhi Le, welcome and congratulations on the progress thus far.

There are a lot of cash flow markets in the Midwest and South/Sun Belt.

We invest heavily for cash flow in St. Louis, MO and I am happy to share our experience thus far if interested.

Eliott Elias · Answer

Killeen Texas?

Matt Guignon · Answer

@Nhi Le

I am an active investor in St. Louis and can say with certainty that ST. Louis is a very attractive market for out of state investors seeking cashflow. My company also offers property management and rehab services making it a very seamless and easy process while working with people who may not be local. I'd love to connect and answer any questions you may have about St. Louis as you begin investing!

Shawn McCormick · Answer

@Nhi Le Welcome and congrats on getting started. I can only speak of Orlando out of the two you mentioned. Cash flow is tough here, although rentals rates are high, purchase prices have outpaced rents. We are fighting a rent control bill right now. If you go to outlying counties like Volusia, Polk and Lake, you could pick up some decent properties for your budget, but the tenant pool would be much different. Anything you find in your budget here will likely only be a duplex, not a tri or quad and be prepared for a big cap ex budget due to age and condition.

Short term rentals here do very well if you have the right mind set and willing to work at it, but again, for you budget, you will only get condos and some townhouses that will be in well-performing areas near Disney. Single-family will be in the high 400's to start.

Hope this helps, best of luck!

Matthew Tregoning · Answer

I'm in the Orlando market as an investor and realtor. If your goal is cash flow, have you considered the short term rentals? I'm a big advocate of this strategy as you get the benefit of buying in markets where you can take advantage of massive appreciate AND have the cash flow. The drawback of course is that it's not as passive as long term rentals. However, there are so many awesome tools and software out there now that it CAN be pretty hands off if you front load the work to put your systems in place.

HOW TO KNOW WHICH MARKET CASH FLOW - FRIENDLY

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