2018 Cash Flow Markets for Properties

20 Replies

I saw a similar discussion for 2017, so wanted to start one for 2018. What are some decent markets out there for good cashflow properties? 

Thanks

-Harsh 

Memphis, Cleveland, Akron, St. Louis, Birmingham

@Antoine Martel - I have been looking at Birmingham and Cleveland as well. How’s the rental market there in general? Is it easy to find renters there?

Originally posted by @Harsh Patel :

@Antoine Martel - I have been looking at Birmingham and Cleveland as well. How’s the rental market there in general? Is it easy to find renters there?

 I find tenants there within 2 weeks

Hi Harsh!  my niche is selling Florida (metro Orlando, metro Tampa, and S Florida) properties for out of state investors (lots of Cali, Israeli, investors etc.)  We have an extremely diverse array of positive economic drivers that yield stability AND growth, and virtually no permits to build units that rent from $650-$1000/mo.... keep in mind, we're still able to find 7 and 8 caps, with value add potential due to below market rents.  Lots of California investors are 1031ing 3 and 4 cap properties for Florida properties that they can control as if they were in their own back yard, thanks to the power team.

Baltimore (highest cash flow I know, in a growth market), Philly, Chicago, Indy and KC, Birmingham, St. Louis

I'm interested in Birmingham and Huntsville which has had great job growth last few years

The actual cold hard data speaks the loudest  Click Here to see post 

If you are looking for cash flow - This is why I moved to Memphis a year ago. 

Market Rent to value ratio

Memphis, TN 9.76%

Detroit, MI 8.69%

Birmingham, AL 8.53%

Indianapolis, IN 8.06%

Kansas City, MO 8.00%

San Antonio, TX 7.96%

Oklahoma City,OK 7.93%

Atlanta, GA 7.89%

Tampa, FL 7.88%

St Louis, MO 7.78%

We do extremely well in Cincinnati and Dayton Ohio and always have.  I love our markets here! 

Picked up 3 more A/B Class properties today to sell to our turnkey clients soon.

We don't sell the C/D junk like many folks do in Cleveland, Columbus, (and everywhere)....and, therefore, we don't have fake CAP rates that are cute at 13 and instantly disappear when the first D class tenant trashes the place costing $11K to rehab.

I've seen it way too many times in the last 15yrs.  Just not worth it.

@Harsh Patel cash flow is becoming hard to locate in todays market. You will have to work on that to make it happen. Most areas are asking price. You have to work hard to get cash flow, on top of equity, on top of ROI. Besides looking in other markets, which I am doing, look at ways to add value so that you cash flow (20% down, great deals, sub-meter units, petition tax assessments renovate, rent increase) and then make sure you have equity in your property when you sell to get paid on the backside of your deal.

Originally posted by @Harsh Patel :

I saw a similar discussion for 2017, so wanted to start one for 2018. What are some decent markets out there for good cashflow properties? 

Thanks

-Harsh 

I am 100% for Cleveland, but you need to make sure you pick your properties carefully. Like any city, you want to make sure you are investing in a decent part of town that will get you good tenants and an amazing ROI. Don't just jump at the first property that is cheap :)

Also, as I gather from this post, you are looking for the NEXt market to invest in for 2018. Make sure to not look into the same markets people have been talking about for years. You do not want to be last to the party.

Good luck!

That's right @Tom Ott , looking for the next opportunity (which will also be my first) out there. 

Brian Blankenship, I know your name. We may have met. I'd love to sit down and speak to you about the Cincy market

Originally posted by @Harsh Patel :

I saw a similar discussion for 2017, so wanted to start one for 2018. What are some decent markets out there for good cashflow properties? 

Thanks

-Harsh 

 Hi Harsh, Columbus, Ohio is experiencing a tremendous amount of growth.  With the highest job and population growth of any city in Ohio, the incredible transformation of areas that 1 or 2 years ago were D- and now B+ its an exciting time to be involved in real estate in Ohio. Good luck with everything! 

NW Indiana, KCMO, Indianapolis, Dayton/Cinncinati

Hmm I wonder if these lists actually have the best cash flow cities or just the places with the most turnkey businesses?

Originally posted by @Tyler Herman :

Hmm I wonder if these lists actually have the best cash flow cities or just the places with the most turnkey businesses?

 Half the time it is people either trying to sell something in their area, or people just pushing how awesome their area is because they really don't know any other areas.

@Eric C. @Tyler Herman - good point. My criteria is to get a deal below the FMV in a decent A/B neighborhood. If I can get it as a turnkey, then even better (but I'm not too optimistic about getting a discount). However, I'm trying to determine markets which are being overlooked at the moment, due to the wrong reasons ...

I am surprised no one has suggested zillow they have really good data on this.

The answer is not the town its the deal. There is cash flow everywhere you just have to find the deal. 

Does Anyone know of a place to get raw data on this? There are many articles out there with a list of top cities however, they are all using a minimum qualifier, so it is essentially a list of the best LARGE cities for investing or cash flow. However, it seems like there are many mid-size or small-size cities that would be less saturated.

I'm new to this so let me know if there is a reason that doesn't make sense.

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