Best cash flow cities for 2023

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Best cash flow cities for 2023

Johnnie Schneider
Investor · Member since 2020 · 18 posts · 18 votes

Hey there, my partner and I are looking to get our first rental property together in 2023. Just wanted to come on here and see what everyones favorite or best cash flow market is currently or moving into this new year. Our budget were looking to stay under is about 120k. Thanks !

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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
3y

Just a heads up that these types of broad posts just end up with a bunch of not-so-hidden advertisement replies to "invest with me."

There are not many investors that are going to work really hard finding opportunities to then turn around and tell the world where their honey hole is.  Just keeping it real.

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  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    3y

    I would say for your budget either Detroit, MI, Cleveland, Oh or Upstate New York. 

    MY top pick would be Detroit MI though. Returns are solid and the city is growing so you can expect a continuous rise in property value. 

    I think with the right expectations and understanding of potential risks - it could be a very solid market to grow a portfolio. 

    1Reply
  • Megan Bridgette
    Member since 2023 · 6 posts · 0 votes
    3y
    Quote from @Nader Shariff:

    I would say for your budget either Detroit, MI, Cleveland, Oh or Upstate New York. 

    MY top pick would be Detroit MI though. Returns are solid and the city is growing so you can expect a continuous rise in property value. 

    I think with the right expectations and understanding of potential risks - it could be a very solid market to grow a portfolio. 


     What parts of Detroit do you recommend?

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Johnnie Schneider
    Cleveland OH is a great market to check out for cashflow under 120k. 

    [email protected]614-412-4565
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    0Reply
  • Nader Shariff
    Detroit, MI · Member since 2020 · 150 posts · 68 votes
    3y
    Quote from @Megan Bridgette:
    Quote from @Nader Shariff:

    I would say for your budget either Detroit, MI, Cleveland, Oh or Upstate New York. 

    MY top pick would be Detroit MI though. Returns are solid and the city is growing so you can expect a continuous rise in property value. 

    I think with the right expectations and understanding of potential risks - it could be a very solid market to grow a portfolio. 


     What parts of Detroit do you recommend?

    Hey there,
    there are tons of blocks, and I say blocks because Detroit is a very block by block city in that values and areas vary literally "block by block", that I personally would recommend. That being said, instead of just listing zip codes or areas - I'll tell you what my strategy has been. I personally like to focus on subdivisions, or areas that are close in proximity to suburban towns and/or other subdivisions in Detroit that have "popped" so that I can capitalize on future migration.
    I'll give you a real-life example if that didn't make sense. Warrendale (48228 zip code in Detroit, MI) is a pocket I focused on when I first started investing in Detroit, specifically the 5, and 6 blocks due to the close proximity to Dearborn Heights/Dearborn. DH and Dearborn are both areas that house a huge Lebanese community and also happens to be the home of the Ford headquarters. That being said, I knew as time went by the values of property would grow so high that eventually people would start migrating into the Detroit side of Ford RD due to the property values being affordable. I figured since people would still be close to their community, markets, shops, and restaurants, while capitalizing on much more affordable housing (on the Det side) investing there would be a win. And quite frankly it was. Houses I picked up for 20k/30K back in the day are now worth 80K - 100K. Not too bad for a few years span. 

    Strongly suggest visiting the city (if you have not yet and learning more about the city before investing though) - happy to chat if you ever would like to. 

    Now for the cliche response; check out 48224, and 48228 - those two are my go to picks for right now. 

    4Reply
  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    New Port Richey, Florida

    1Reply
  • Andres Murillo
    Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
    3y
    Quote from @Johnnie Schneider:

    Hey there, my partner and I are looking to get our first rental property together in 2023. Just wanted to come on here and see what everyones favorite or best cash flow market is currently or moving into this new year. Our budget were looking to stay under is about 120k. Thanks !


    Birmingham, AL - low cost of entry, strong renter base, cookie-cutter product that can be easily duplicated, brick-built homes in A-C grade neighborhoods, decent growth, great cash flow. 

    The matrix below is something I review with clients looking to explore new markets. The idea of the Matrix I "why are investors choosing these markets" not "what's the end all be all truth". This is also based on my experience working with investors in these specific markets for the past 5+ years. You can get more context and input from the community in the post below. 

    https://www.biggerpockets.com/...

    2Reply
  • Megan Bridgette
    Member since 2023 · 6 posts · 0 votes
    3y
    Quote from @Nader Shariff:
    Quote from @Megan Bridgette:
    Quote from @Nader Shariff:

    I would say for your budget either Detroit, MI, Cleveland, Oh or Upstate New York. 

    MY top pick would be Detroit MI though. Returns are solid and the city is growing so you can expect a continuous rise in property value. 

    I think with the right expectations and understanding of potential risks - it could be a very solid market to grow a portfolio. 


     What parts of Detroit do you recommend?

    Hey there,
    there are tons of blocks, and I say blocks because Detroit is a very block by block city in that values and areas vary literally "block by block", that I personally would recommend. That being said, instead of just listing zip codes or areas - I'll tell you what my strategy has been. I personally like to focus on subdivisions, or areas that are close in proximity to suburban towns and/or other subdivisions in Detroit that have "popped" so that I can capitalize on future migration.
    I'll give you a real-life example if that didn't make sense. Warrendale (48228 zip code in Detroit, MI) is a pocket I focused on when I first started investing in Detroit, specifically the 5, and 6 blocks due to the close proximity to Dearborn Heights/Dearborn. DH and Dearborn are both areas that house a huge Lebanese community and also happens to be the home of the Ford headquarters. That being said, I knew as time went by the values of property would grow so high that eventually people would start migrating into the Detroit side of Ford RD due to the property values being affordable. I figured since people would still be close to their community, markets, shops, and restaurants, while capitalizing on much more affordable housing (on the Det side) investing there would be a win. And quite frankly it was. Houses I picked up for 20k/30K back in the day are now worth 80K - 100K. Not too bad for a few years span. 

    Strongly suggest visiting the city (if you have not yet and learning more about the city before investing though) - happy to chat if you ever would like to. 

    Now for the cliche response; check out 48224, and 48228 - those two are my go to picks for right now. 


     Wow!  Thank you so much for this lengthy reply.  Greatly appreciate you!  I will start doing research and reach out to you when I am ready.  Thanks again!

    0Reply
  • Luke Rorech
    Real Estate Agent · Greater Tampa Bay · Member since 2017 · 392 posts · 290 votes
    3y
    Quote from @David Ramirez:

    New Port Richey, Florida

    I’m a HUGE fan of NPR long term. Nice to see someone else mention it. 
    1Reply
  • Daniel Kosciuszko
    Member since 2021 · 11 posts · 7 votes
    3y
    Quote from @Nader Shariff:

    I would say for your budget either Detroit, MI, Cleveland, Oh or Upstate New York. 

    MY top pick would be Detroit MI though. Returns are solid and the city is growing so you can expect a continuous rise in property value. 

    I think with the right expectations and understanding of potential risks - it could be a very solid market to grow a portfolio. 

    Where in upstate NY?
    0Reply
  • Cliff Garcia
    Member since 2020 · 13 posts · 11 votes
    3y
    Quote from @Justin Brickman:

    San Antonio!


     Everything I see is way out of range here at home. Even the foreclosure alerts I get off and on are always in the red. Nothing I come across will pay for itself. Unless of course you go on a low ball spree with a bunch of listings to make the numbers work 

    0Reply
  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    Hey Johnnie, I love Columbus because of the mix of appreciation and cashflow. Significant economic drivers like OSU, multiple fortune 500 companies, and Intel's new $20bn plant will continue to create job and population growth. Even so, we still see deals that cashflow well in the $120k range due to strong rental demand. Cleveland is another great city for cash flow in that price range.

    1Reply
  • Justin BrickmanBusiness Member
    Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
    3y
    Quote from @Cliff Garcia:
    Quote from @Justin Brickman:

    San Antonio!


     Everything I see is way out of range here at home. Even the foreclosure alerts I get off and on are always in the red. Nothing I come across will pay for itself. Unless of course you go on a low ball spree with a bunch of listings to make the numbers work 


     If you're actively looking and offering, you will find a great one

    [email protected]210-827-6020
    Justin Brickman Realty4.9144 Reviews
    WebsiteView Page
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Johnnie Schneider:

    Hey there, my partner and I are looking to get our first rental property together in 2023. Just wanted to come on here and see what everyones favorite or best cash flow market is currently or moving into this new year. Our budget were looking to stay under is about 120k. Thanks !

    Hi Johnnie, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just this month, I’ve gotten under contract for my clients for multiple 20%+ cash on cash rental properties so there’s definitely tons of opportunity here. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Amy Mitchell
    Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes
    3y
    Quote from @Bob S.:
    Quote from @Johnnie Schneider:

    Hey there, my partner and I are looking to get our first rental property together in 2023. Just wanted to come on here and see what everyones favorite or best cash flow market is currently or moving into this new year. Our budget were looking to stay under is about 120k. Thanks !


     Cleveland of course, It has been the number 1 overall rental market for 10 years and still going strong. 10% or better net caps are to be had for cash buyers. For 120k or less you can get a duplex with 850/ 850 or better, 

    Good Luck 

    Good luck finding lenders who will fund deals under 100k in Cleveland. I was looking to invest there next, but the duplexes I'm looking to purchase are only in the $65 - $80k range and hard to find lending for, and forget trying to close these deals under an LLC.

    0Reply
  • Amy Mitchell
    Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes
    3y

    Indianapolis or Cincinatti might be good places to start investing in.

    1Reply
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