Best Cash-Flow market places
Member since 2019 · 46 posts · 10 votes
Hello I'm fairly new to this forum, so I apologize if this doesn't belong in this section.
I'm also new to RE investing and am looking to get into a turn-key SFR that cash-flows decently. What are some of the best and most consistent market-places in the country that cash-flow? I need some good advice so I'm looking in the right area and not wasting my time in areas that are too expensive. I'm from San Diego, so everything else in the country SEEMS cheaper, but I know isn't necessarily.
So far, I've noticed Anchorage has some decent properties that immediately cash-flow. I've been told Kansas City is a good market-place. Where else should I be looking? What are your experiences?
Thank you in advance!
@Jordan Roberts - Kansas City, MO is awesome. A few other Midwestern cities are great too. Have criteria, pick a city, dig in and then start figuring out who the honest players are there.
Hello I'm fairly new to this forum, so I apologize if this doesn't belong in this section.
I'm also new to RE investing and am looking to get into a turn-key SFR that cash-flows decently. What are some of the best and most consistent market-places in the country that cash-flow? I need some good advice so I'm looking in the right area and not wasting my time in areas that are too expensive. I'm from San Diego, so everything else in the country SEEMS cheaper, but I know isn't necessarily.
So far, I've noticed Anchorage has some decent properties that immediately cash-flow. I've been told Kansas City is a good market-place. Where else should I be looking? What are your experiences?
Thank you in advance!
Hey Jordan I am also a newer investor here in SD as well. Are you only looking to invest within other markets or are you also looking in SD as a potential? Do you have a team in place in other areas you would look to invest in or just use a management company?
@Jordan Roberts I have to say that I've never seen Anchorage on anyone's short list. Keep in mind that cheap doesn't mean good and it's all relevant. Generally, the Midwest and Southeast are most affordable and have the best cash flow. In addition to cash flow, look at the economic and demographic trends such as population growth and job growth. Look for diverse, modern economies and industry. Then look for markets that have low to moderate property taxes and insurance and also favorable landlord tenant laws. I especially like Indianapolis and Kansas City for all of these. I'd be happy to give you my nearly 10 years of insights and experience in both. Feel free to reach out.
Turnkey-wise, I know of good cash-flow ones right now in Chicago, St. Louis, KC, Indy, Cincinatti, and Dayton. Part of the reason for those cities though, other than cash flow, is good turnkey providers.
https://www.biggerpockets.com/blog/2015/12/26/find...
Unless you're not at all talking about turnkeys from a turnkey provider, just a property that is in turnkey condition. In which case, ignore 75% of my response. :)
I live in Anchorage-I am not sure if there are any turnkey providers up here. We do have some realtors that specialize in investments and separate property management companies. I have never heard of a true turnkey provider in this area though. Things to keep in mind about harsh climates like Alaska is that they are hard on everything-cars, property, the people sometimes....
I can tell you that the C+ and B class SFH properties start at around 200-250k in this town for a fourplex you'd be extremely lucky to find one at 350k. The lower prices tend to be in areas with more crime, poor reputations, and harder tenants. There is money to be made if that is what you are into. I live here and I don't want to tackle that market (though I have friends who have been very successful doing it) I would think that it would be incredibly difficult to do from out of state.
I live in a B/B- neighborhood where SFHs cost about 250 to 300k and the tri/fourplexes are 400-600k. Some duplexes in the area go for 500k. I have had stuff stolen out of my truck twice in the last year. Unfortunately, crime is high, even in the reasonably decent areas of town. Luckily, the crime is more petty in these areas-but it is still there. There is a rampant problem with people smashing car windows at trail heads, even in nice parts of town, and stealing worthless crap out of people's cars. These trailheads are pretty out of the way for the casual lurker up to no good.
There are some Anchorage "suburbs" that you can do pretty well in. Eagle River is probably the safest these days. A lot of military people live in Eagle River since it is a pretty easy drive to where our base is. Crime in "the valley" (Wasilla and Palmer) is similar to Anchorage.
Not to turn you away from Anchorage-it is a great place. Being 15 minutes away from gorgeous rugged mountains, almost any outdoor activity you can dream of, some of the most beautiful highways in the country is pretty hard to pass up. However, for investing, I personally turned to some out of state providers in the midwest.
Hey Jordan I am also a newer investor here in SD as well. Are you only looking to invest within other markets or are you also looking in SD as a potential? Do you have a team in place in other areas you would look to invest in or just use a management company?
Hey I'm looking out-of-state. California is just too damn hard to find anything that cash-flows for a new investor. I don't have tons of money so I will build my portfolio out of state. I also don't want to get involved with future rent-control either. I know rent-control is going to happen in all of California. It's just a matter of time.
@Jordan Roberts I have to say that I've never seen Anchorage on anyone's short list. Keep in mind that cheap doesn't mean good and it's all relevant. Generally, the Midwest and Southeast are most affordable and have the best cash flow. In addition to cash flow, look at the economic and demographic trends such as population growth and job growth. Look for diverse, modern economies and industry. Then look for markets that have low to moderate property taxes and insurance and also favorable landlord tenant laws. I especially like Indianapolis and Kansas City for all of these. I'd be happy to give you my nearly 10 years of insights and experience in both. Feel free to reach out.
Thank you very much for this information! I really appreciate it. I will definitely message you with any questions I can think of.
Turnkey-wise, I know of good cash-flow ones right now in Chicago, St. Louis, KC, Indy, Cincinatti, and Dayton. Part of the reason for those cities though, other than cash flow, is good turnkey providers.
https://www.biggerpockets.com/blog/2015/12/26/find...
Unless you're not at all talking about turnkeys from a turnkey provider, just a property that is in turnkey condition. In which case, ignore 75% of my response. :)
Ya I'm seeing KC being mentioned over and over by a lot of different people. As well as the Midwest in general. Especially as a new investor that doesn't have a lot of money it seems like a good entry-point.
Do you know any reputable turn-key providers in those areas? Companies that offer good inventory?
I live in Anchorage-I am not sure if there are any turnkey providers up here. We do have some realtors that specialize in investments and separate property management companies. I have never heard of a true turnkey provider in this area though. Things to keep in mind about harsh climates like Alaska is that they are hard on everything-cars, property, the people sometimes....
I can tell you that the C+ and B class SFH properties start at around 200-250k in this town for a fourplex you'd be extremely lucky to find one at 350k. The lower prices tend to be in areas with more crime, poor reputations, and harder tenants. There is money to be made if that is what you are into. I live here and I don't want to tackle that market (though I have friends who have been very successful doing it) I would think that it would be incredibly difficult to do from out of state.
I live in a B/B- neighborhood where SFHs cost about 250 to 300k and the tri/fourplexes are 400-600k. Some duplexes in the area go for 500k. I have had stuff stolen out of my truck twice in the last year. Unfortunately, crime is high, even in the reasonably decent areas of town. Luckily, the crime is more petty in these areas-but it is still there. There is a rampant problem with people smashing car windows at trail heads, even in nice parts of town, and stealing worthless crap out of people's cars. These trailheads are pretty out of the way for the casual lurker up to no good.
There are some Anchorage "suburbs" that you can do pretty well in. Eagle River is probably the safest these days. A lot of military people live in Eagle River since it is a pretty easy drive to where our base is. Crime in "the valley" (Wasilla and Palmer) is similar to Anchorage.
Not to turn you away from Anchorage-it is a great place. Being 15 minutes away from gorgeous rugged mountains, almost any outdoor activity you can dream of, some of the most beautiful highways in the country is pretty hard to pass up. However, for investing, I personally turned to some out of state providers in the midwest.
Thanks for your insight! One question I did have is why are HOA's soooo expensive up there? I've been finding many units with $600+ HOAs on places that are well under $200k. Is it because of harsh winters?
I have never directly dealt with an HOA so I can't necessarily speak to that. I am assuming the $600+ is per year?
I am curious what places you are finding well under $200k. Are they condos? Or are they in the north east part of town? Or is it near some areas of Spenard Road? Parts of both of those areas have really been cleaned up in recent years but there are still plenty of really bad pockets. If the HOA fees are in that area, it could be for security and vandalism mitigation...
I have never directly dealt with an HOA so I can't necessarily speak to that. I am assuming the $600+ is per year?
I am curious what places you are finding well under $200k. Are they condos? Or are they in the north east part of town? Or is it near some areas of Spenard Road? Parts of both of those areas have really been cleaned up in recent years but there are still plenty of really bad pockets. If the HOA fees are in that area, it could be for security and vandalism mitigation...
Here's an example of one I found near Russian Jack park:
https://www.zillow.com/homes/for_sale/Anchorage-AK...
This one actually has a reasonable HOA of $271. What kind of neighborhood is this area? Seems to be North East.
@Jordan Roberts - Kansas City, MO is awesome. A few other Midwestern cities are great too. Have criteria, pick a city, dig in and then start figuring out who the honest players are there.
@Anna Ferntheil @Jordan Roberts - I appreciate the Anchorage dialogue - as an investor here. Just recently a good 4plex in south Anchorage popped up at $570k with 1% rents in place. Good building, good area - that is what a square deal on a 4plex looks like here. Optimists hope we get some Seattle/Portland people moving north for cost of living/quality of life reasons - or a natural gas pipeline - to boost job/pop growth - without those - we'll probably stay around a 2-3% appreciation rate... fairly slow and steady over the past 30 years here.
Re:HOA's - nothing crazy as a realtor - some are high if they are covering all or most utilities - (gas for heat, electric, water/sewer, trash + exterior/landscape, etc.).
@Jamie Rose thanks for the input on a recent deal!
Ya I'm seeing KC being mentioned over and over by a lot of different people. As well as the Midwest in general. Especially as a new investor that doesn't have a lot of money it seems like a good entry-point.
Do you know any reputable turn-key providers in those areas? Companies that offer good inventory?
I do. Shoot me a message or an email at my address below.
Hello I'm fairly new to this forum, so I apologize if this doesn't belong in this section.
I'm also new to RE investing and am looking to get into a turn-key SFR that cash-flows decently. What are some of the best and most consistent market-places in the country that cash-flow? I need some good advice so I'm looking in the right area and not wasting my time in areas that are too expensive. I'm from San Diego, so everything else in the country SEEMS cheaper, but I know isn't necessarily.
So far, I've noticed Anchorage has some decent properties that immediately cash-flow. I've been told Kansas City is a good market-place. Where else should I be looking? What are your experiences?
Thank you in advance!
Welcome to the site Jordan. There are tons of turnkey markets out there. Many are well represented by sellers & turnkey operators here on BiggerPockets. The most popular markets are
Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.
One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.
Cash Flow is great, but here are some other things you want to look into before stepping into any market espeically as an out of state investor :
1. RENT TO VALUE RATIO. This is the biggest determinant of cash flow. Make this your benchmark when you search for new markets if your goal is to be a cash-flow investor.
2. Go for low property taxes and landlord friendly laws. Investor-friendliness and having a positive, low stress OOS experience go hand-in-hand.
3. A property manager who can educate you on a market, help you form a strategy, fit right into your due diligence process, and execute on a clear takeover game plan as soon as you hold title.
These things are KEY in finding a good market, this will allow you to have a much more postive experience as an out of state investor!
Good luck to you in your journey!
Thank you very much everyone for the great responses!