How to find cash flow positive properties?

Question

I am a first time investor out of state investor . I am looking for cash flow positive single family homes at San Antonio. My husband bought his first investment property in the year 2020. Since then we haven't bought any property.

I am getting into buying a investment property in San Antonio. My goal is to buy a cash flow positive single family property. With high interest rate and overbidding, its becoming difficult to find a positive cash flow property.

Should I change my strategies? What can be done differently?

Account Closed · Answer

Hey Anuja! My advice here would be a small mindset shift and switch to thinking in terms “how can I make a property cashflow…” vs. “how can I find?”

Given all the conditions you mentioned, the likelihood of any property just sitting there ready to cashflow positive can be challenging at best.

That being said - making a property cashflow positive can most definitely happen! Improving floor plan, maximizing zoning, adding units, upgrading finishes, etc. all are solid ways to achieve this. If you have the grit to enter the bidding fray and a willingness to get creative with how you operate and upgrade your asset, you’ll be happy with the result.

Best of luck!

Taylor L. · Answer

It's very difficult right now. Make sure you're looking at off-market properties which have plenty of room to add value and reposition.

Jessica James · Answer

Account Closed Great advice!

Shane J. Renard · Answer

There are deals out there, and it's a numbers game for sure. I only deal with investment properties, and never put out deals that do not return 15%+ ROI. Maybe try other suburbs. What are your marketing efforts thus far?

Farida Hussain · Answer

Hi All - I'm also in the same boat, looking for cash flow positive properties in the Houston, TX area. Any suggestions on what areas to explore would be appreciated. Also, are there any real estate agents that deal with investment properties would like to connect with as well.

Andrew Frowiss · Answer

Hi @Anuja Agrawal I would recommend you look into investing in Killeen TX. It's an hour north of Austin and it's still a good market to find cash flowing properties with decent appreciation, and low purchase prices. I help Investors buy there regularly. It's getting a little more competitive but still not nearly as bad as Austin.

Chris Davidson · Answer

@Kez Strong Networking. The short answer is get around folks that are dealing in properties all day every day as investments. Some agents do this some do not. Which method of networking works best will depend on the area you are at. But get active and start talking to folks. Easiest way is to search for meetups and go from there if you don't know anyone actively dealing in properties day in and day out.

Kez Strong · Answer

What is the best way to find off market properties?

Patrick Drury · Answer

@Anuja Agrawal@Taylor L. hit the nail on the head. If the only deals you are going after are on the market, you won't stand a chance unless you are extremely aggressive. You need to work with an agent that specializes in working with investors and in finding off-market deals. Also, you are most likely putting yourself at a disadvantage since you are only looking at single-family rentals which a majority of people that buy them are homeowners who this is not an investment for. Owner-occupants are willing to overpay since they are not trying to make money on buying the property so the numbers don't matter to them.

Anuja Agrawal · Answer

Thanks for your advice.

How to find cash flow positive properties?

How to find cash flow positive properties?

Most Popular Reply

10 Replies