Best Cities for High Cash Flow Multi-Family?

Question

Hi all,

I'm actively looking for multi-family investment opportunities with strong cash flow. Currently exploring Birmingham and Cleveland — would love to hear your thoughts or experiences with these markets.

Are there any other cities you'd recommend for high cash flow potential (especially for remote investors)?

Thanks in advance!

Samuel Diouf · Answer

Hey Angela, Cleveland, OH is a strong market to invest in from in or out of the state! I started investing here after moving to Ohio from Florida for of the growing market. I spend all day sourcing deals now.

If you’re looking to invest long distance, I definitely recommend first identifying a single market you want to invest in, and then putting a heavy focus on building your core-4 team. This team consists of an Investor Focused Agent, Lender, Contractor, and PM.

Read this article on the "core 4". It explains the team that you should develop to have a strong foundation under you while investing remotely.

https://www.biggerpockets.com/blog/core-four-real-estate-team

Arman Ahmed · Answer

@Angela Davis

Hey! I invest in Ohio and think it’s a great option for cash flow—especially if you’re investing remotely. Cleveland still has some strong opportunities, especially in areas like Parma, Old Brooklyn, and Lakewood. Just make sure to vet neighborhoods closely—it can really vary block by block.

Also worth looking into Dayton and Columbus. Dayton has solid cash flow with low entry prices, and Columbus is a bit more competitive but has strong job/population growth and stable tenant demand.

Overall, Ohio is pretty landlord-friendly, and there are still pockets where the numbers make sense for BRRRR or long-term buy-and-hold. Let me know if you’re leaning toward small multis or bigger buildings.

Bradley Buxton · Answer

@Angela Davis

Are there other factors that are important?  Cash flow is one factor in a successful rental. There are other such as appreciation, time, energy, and location. If you buy with all cash, you will usually cash flow but then you might have terrible residents that tear up your property and then you have lost all the gains. Most markets you can find deals that will cash flow even with lending.  We are finding that in the Reno Tahoe market, looking for creative deals with seller financing, assumable loans, and new construction is key to making the numbers work. There are lots of threads on here of those seeking the cash flow and finding only a pit. Find a market that works for you and you can work on a strategy that will cash flow.

Sachin Soni · Answer

Hi Folks, jumping on to this thread. I am in California and looking at Birmingham OR Cleveland/Akron/Dayton area. Who can help in either market? Any recommendations?

I am looking for cashflow and part appreciation. Cashflow is key and appreciation can be 3-5% a year. Would love to connect with a realtor in either area who can provide good guidance. Arman OR Samuel? @Arman Ahmed @Samuel Diouf

Jason Cory · Answer

@Sachin Soni

I can only speak to Birmingham. We have a stable market due to the medical industry but like every market in the country, we are softening right now as well. Due to our price points being lower than most markets, our gains & losses are less noticeable.

Cash Flow or appreciation are typically not going to match. In recent years, appreciation has matched cash flow due to a severely out of balance market & economy. The Highest & Best Use tests are key to investing but most investors re not aware of the simple analysis. Look at your investments from that perspective & you will match your goals to your investments. The Maximally Productive test is where you either make the most money or buy the wrong investment for your goals.

Lindsay Davis · Answer

@Angela Davis,

Birmingham’s definitely a good market, but there’s some nuance to that answer because the city’s submarkets vary widely.

For example, you would be hard pressed to find a cash-flowing deal in a neighborhood in southeast Birmingham like Homewood, Vestavia Hills, or Mountain Brook.

On the other hand, you may have more luck in B-grade areas in the western part of the city like Hueytown, Bessemer, Forestdale, and Adamsville—or even in towns within commuting distance like Jasper.

Caleb Brown · Answer

What are you shooting for cashflow wise? Happy to chat on Kansas City, it is a similar market to those 2 you mentioned

Best Cities for High Cash Flow Multi-Family?

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