Best cashflow rental property cities for buying duplex in 2021

23 Replies

Hello guys,

I'm looking to pick area for my first investment property.

Which places in your opinion have a good cash flow properties comparing to San Antonio and also with a strong job market (I was thinking about Albuquerque NM, Atlanta, Charlotte NC, Cincinnati/Cleveland OH, Huntsville AL)

My analysis of duplex in San Antonio (El Seguin)

Duplex - El Seguin - 2021 Building
Price439000
Downpayment 20%87800
Principal19476
Interest 4%
Property management (8%. Leasing fee 50% of the rent, Lease renewal - 1502876.5
Insurance ($66 per m)800.04
Taxes (1.97%; $700 per m)8648.3
Maintenance (4% - new building)1392
Vacancy (8%)2784
HOA ($74 per m)894.96
Rent Annual ($2900 per month)34800
Operating income:-2071.8

Albuquerque you can definitely find these kinds of cash flowing properties. Likely cheap purchase price and also lower rents than your San Antonio example, depending on size and location. The growth/ job market is not as strong as San Antonio ( yet). But it's not as competitive either I don't think. I don't know about the other cities on your list. 

@Artur A. i'm currently actively looking in Albuquerque, and you can definitely find cash flowing duplexes anywhere from $200 - $400K depending on the location and condition. Taxes will be less than Texas, but PM is probably closer to 10%. Most of the properties are older in age, so your 4% maintenance would be light; it'd be tough to find a new building similar to your San Antonio example. If I were you, I'd search each area for duplexes and run the numbers on 5 or so properties in each market. That'll give you a decent sample size of the differences to expect.

Hello Artur, I am located in the Cincinnati area and lately we have seen an increment in rental properties around here. We work with several investors and it always depends. However, looking for a good team (Realtor, Property Managers, Lenders, Etc...) will be the best way to find properties that cashflow. I have also heard Atlanta is good and Cleveland and Columbus OH. 

I hope it helps! 

@Artur A. I can't speak for all the cities but I can speak towards San Antonio. It is getting harder and harder to find "good deals" because of this hot market here! You definitely need to either be calling home owner's directly or know about off market sources via an agent, investor or wholesaler.

Right now from what I've seen the deals that cashflow the most are in C- to B- areas of San Antonio. This brings up an issue sometimes with newer investors because they aren't comfortable in areas that aren't as nice. I personally believe deals are in every one of those cities just depends on your comfort level and who you know there. 


Once you narrow down 1-3 I think you should definitely fly or drive out to meet your PM, Leasing Agent, Repair/Contractor or whoever will be a part of your team. Drive through the areas and neighborhoods and get a good feel for the area and who lives there. This will hopefully either solidify that city or cross it off your list. Cities are very different on paper than they are in person!

@Artur A. I invest in Albuquerque and Cleveland OH. Both markets have strong cashflow, but you need to be careful of the neighborhood. I like the Nob Hill area of Albuquerque and Rio Rancho. Be careful about properties in the Fairgrounds area, that is a very challenging area.

For Cleveland, we have invested in Cleveland Heights. We love that area and continue to purchase properties there. However, taxes are a real challenge. They are much higher than New Mexico and go up on sale. 

I have great connections in Abq if you want to get some referrals. 

Hey Artur. I agree with @Brandon Goldsmith . Ohio is generally a good market for small multi-family properties. We have a lot of inventory and long term renters. Our state is rich in technology and healthcare careers. The cost of living is low. Many people rent. I'd strongly recommend looking within our state.

Originally posted by @Artur A. :

Hello guys,

I'm looking to pick area for my first investment property.

Which places in your opinion have a good cash flow properties comparing to San Antonio and also with a strong job market (I was thinking about Albuquerque NM, Atlanta, Charlotte NC, Cincinnati/Cleveland OH, Huntsville AL)

My analysis of duplex in San Antonio (El Seguin)

Duplex - El Seguin - 2021 Building
Price439000
Downpayment 20%87800
Principal19476
Interest 4%
Property management (8%. Leasing fee 50% of the rent, Lease renewal - 1502876.5
Insurance ($66 per m)800.04
Taxes (1.97%; $700 per m)8648.3
Maintenance (4% - new building)1392
Vacancy (8%)2784
HOA ($74 per m)894.96
Rent Annual ($2900 per month)34800
Operating income:-2071.8

Hi @Artur A. , I have been finding quads in Huntsville and the surrounding areas for under $300,000. I don’t come across a lot if duplexes. Huntsville is a strong market with a lot of job growth and I would definitely recommend looking into it a bit more.

@Jens Nielsen I would love to network and use some of your connections in Albuquerque. I have actively been putting in offers consistently for about 2months and it seems like all the small multifamily and SFH are going for above market and asking price by 20-30k to the point where they don't cash flow… I have been struggling in this market. Any advice or recommendations you may would be great.

Originally posted by @Jesus Moreno :

@Jens Nielsen I would love to network and use some of your connections in Albuquerque. I have actively been putting in offers consistently for about 2months and it seems like all the small multifamily and SFH are going for above market and asking price by 20-30k to the point where they don't cash flow… I have been struggling in this market. Any advice or recommendations you may would be great.

Thanks to everyone for your replies.

Can I ask you to share your analysis if you have? 

Do you mean that all investment properties (SFH, small multifamily) that you analyzed on the market are negative cash flow? Even without property management expenses?

Originally posted by @Jens Nielsen :

@Jesus Moreno and @Artur A. it's a challenging market for sure. But there are deals to be found. Connect with me directly and I can share some of my contacts in Abq that may be able to help you.

Thanks for your replies. Why do you think it is a challenging market (Abq)? Hard to win an offer or another reason?

It's just hard to find deals that make sense. We purchased a $400K 11 unit apartment building a year ago, and someone is willing to pay $610K now to buy it from us. That is a 50% increase in one year. We did renovate it, but still a big increase.

Originally posted by @Brendan Miller :

@Artur A. i'm currently actively looking in Albuquerque, and you can definitely find cash flowing duplexes anywhere from $200 - $400K depending on the location and condition. Taxes will be less than Texas, but PM is probably closer to 10%. Most of the properties are older in age, so your 4% maintenance would be light; it'd be tough to find a new building similar to your San Antonio example. If I were you, I'd search each area for duplexes and run the numbers on 5 or so properties in each market. That'll give you a decent sample size of the differences to expect.

What resources (websites) would you use to find a duplex in ALBQ, NM? I haven't found duplexes/multifamily in Redfin, Zillow. 

 Thanks

Originally posted by @Jens Nielsen :

It's just hard to find deals that make sense. We purchased a $400K 11 unit apartment building a year ago, and someone is willing to pay $610K now to buy it from us. That is a 50% increase in one year. We did renovate it, but still a big increase.

Hi Jens, I DM'ed you about connections