Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Welcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!
Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.
A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:
- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem. - South Bend, IN – Underrated market with solid returns and affordable small multifamily options. - Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market. - Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.
If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.
Happy to help or answer any other questions!
Best of luck,
Melissa
Hi Melissa,
Thanks for the ecouragement and information. Our family has some Single-Family homes in Decatur, AL, so Birmingham has been catching my eye lately! I can get someone out to visit a property to vet it for me, but I'd have to set up all the peripherals like management, maintenance, etc. I appreciate your info and guidance.