Favorite cash flowing markets in smaller cities

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Favorite cash flowing markets in smaller cities

Don Shoemaker
Member since 2021 · 2 posts · 3 votes

Hello investors or investor-friendly agents!  Im looking for suggestions on where to focus my search for a long term hold, single family rental with good cash flow.  Looking to spend 120-150k this time around.  I know some folks like big metro areas, but I’d like to focus on a 25-50k population area.  I’ve considered Midwest, the MidSouth or SE US, but it’s tough to know every region’s potential.  Thanks in advance!

Don

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  • Leo R.
    Investor · Member since 2021 · 591 posts · 695 votes
    3y

    @Don Shoemaker I'd suggest checking out Morgantown, WV.  It has one of the largest universities and health sciences center/hospital in the region, often pretty reasonable prices, and probably potential for cashflow. I'm not certain, but I think taxes might be low there, too. However, be forewarned: it is definitely a university town, meaning that the tenant pool is transitory and seasonal (i.e.; it's mostly undergrad students, grad students, traveling nurses, medical residents, etc.).  

    I don't personally own property there, but I lived there for many years and have considered going back to buy property...

    I'd also suggest looking into Pittsburgh, which has a lot of the advantages of Morgantown, plus big city amenities and a much more multi-faceted economy (though, I think their taxes might be a little trickier...you'll want to ask a local pro about that).

    Good luck!

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Don Shoemaker:

    Hello investors or investor-friendly agents!  Im looking for suggestions on where to focus my search for a long term hold, single family rental with good cash flow.  Looking to spend 120-150k this time around.  I know some folks like big metro areas, but I’d like to focus on a 25-50k population area.  I’ve considered Midwest, the MidSouth or SE US, but it’s tough to know every region’s potential.  Thanks in advance!

    Don

    WHY ?> Whomever told you this strategy simply has no idea what they are doing, Why would you want to invest in a " nothing " town ? 
    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Don Shoemaker

    I got some places in NKY I know you'd like. Let me know!

    [email protected]859-443-4952
    Sam McCormack Realtor
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    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Killeen Texas   

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  • Liam TenniesPro Member
    Real Estate Agent · Pittsburgh, PA · Member since 2020 · 44 posts · 40 votes
    3y

    Going to second the response that mentioned Pittsburgh. Mid sized city that still has enough economic drivers such as healthcare, higher education, financial services, tech/AI, etc. 

    Can find properties here that are relatively affordable and within your price range of 120-150k that will cashflow in the 1.25-1.5% of PP range. See it all the time when working with investors. Just have to go about 25-45 minutes from downtown where prices are a bit lower but there's still proximity to job hubs and you won't have an issue getting them rented out. Happy to talk more with you about the market and would love to help.

    Best of luck, Don!

    [email protected]
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