Best Cities for Cashflow Rentals?

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Best Cities for Cashflow Rentals?

Ralph Richardson
Realtor · Riverside, CA · Member since 2014 · 18 posts · 12 votes

My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

At the moment we are considering Huntsville Al and Al Paseo, TX

But what other places should we be considering?

Thanks!

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Allen Tackett
Member since 2020 · 33 posts · 30 votes
3y

Athens, AL (college town next to Huntsville) is a gem.  You can still get cash flow in both cities.  I've also recently bought in South Carolina and lots of cities there still work.  Most of Georgia still works, from Atlanta to Valdosta.  Tulsa, OK still works, and so does Waco, TX.  These are all great markets with growing economies for the most part.  Baltimore still works, but be careful.  Lots of shoddy rehabs and bad neighborhoods.  You can go further North and find cash flow, but with older homes, it just takes one bum HVAC or overlooked plumbing issue and you'll lose most your cash flow for that year.  Not saying don't go for it, but be careful with older homes if you're just getting started and out of state.  Good luck and reach out any time!

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  • Joshua Filkill
    Rental Property Investor · Columbus, OH · Member since 2019 · 135 posts · 160 votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Cleveland is a great city for cash flow that also has a low purchase price entry point. This would be better for SF or small multi family here. Let me know if you want to talk more about investing in Cleveland. 
    5Reply
  • Matthew Wolach
    Member since 2023 · 13 posts · 3 votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    In your same position but can’t really get any advice from others. What have you found?
    1Reply
  • Caleb Bryant
    Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes
    3y

    @Ralph Richardson I say Huntsville but I’m also a little biased haha. With that said, if you ever want to chat Huntsville let me know! We’ve done 150+ transactions in the area since 2020

    5Reply
  • Allen Tackett
    Member since 2020 · 33 posts · 30 votes
    3y

    Athens, AL (college town next to Huntsville) is a gem.  You can still get cash flow in both cities.  I've also recently bought in South Carolina and lots of cities there still work.  Most of Georgia still works, from Atlanta to Valdosta.  Tulsa, OK still works, and so does Waco, TX.  These are all great markets with growing economies for the most part.  Baltimore still works, but be careful.  Lots of shoddy rehabs and bad neighborhoods.  You can go further North and find cash flow, but with older homes, it just takes one bum HVAC or overlooked plumbing issue and you'll lose most your cash flow for that year.  Not saying don't go for it, but be careful with older homes if you're just getting started and out of state.  Good luck and reach out any time!

    6Reply
  • Allen Tackett
    Member since 2020 · 33 posts · 30 votes
    3y
    Quote from @Matthew Wolach:
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    In your same position but can’t really get any advice from others. What have you found?

     Brother Matthew - I just posted some leads for you below.  Good luck man.

    2Reply
  • Kyle Butler
    Property Manager · Indianapolis · Member since 2022 · 21 posts · 8 votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Indianapolis is a great SFR market. The area provides low entry points and consistent cash flow. Let me know if you want to dive deeper into particular areas in this market.
    0Reply
  • Kevin PaulkPro Member
    Rental Property Investor · Brooklyn, NY · Member since 2016 · 219 posts · 174 votes
    3y

    @Ralph Richardson

    Check out this great article by @Dave Meyer on 2023 cash flow markets 

    https://www.biggerpockets.com/...

    2Reply
  • Matthew Wolach
    Member since 2023 · 13 posts · 3 votes
    3y
    Quote from @Allen Tackett:
    Quote from @Matthew Wolach:
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    In your same position but can’t really get any advice from others. What have you found?

     Brother Matthew - I just posted some leads for you below.  Good luck man.

    Sorry I don’t see them! Thanks in advance
    0Reply
  • Robert Brunson
    Rental Property Investor · Richmond, VA · Member since 2018 · 15 posts · 9 votes
    3y

    @Joshua Filkill hey Josh, I have some questions about the Ohio market. Cleveland specially can I shoot you a message?

    0Reply
  • Brandy RollinsPro Member
    Rental Property Investor · Cleveland, OH · Member since 2023 · 11 posts · 6 votes
    3y

    Cleveland is a great market for cash-flow, with plenty of affordable duplex and triplex properties! I’m happy to answer any questions about the market. 

    1Reply
  • Ralph Richardson
    OP
    Realtor · Riverside, CA · Member since 2014 · 18 posts · 12 votes
    3y

    @Caleb Bryant - I’ll reach out for sure! I’m a bit biased as well as I loved there for a time and have friends in the area. I’ve seen it grow and like it’s long term potential.

    Looking forward to hearing about your experience investing there.

    RALPH

    0Reply
  • Harrison Chow
    Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Hey Ralph! When considering OOS investing, I suggest seeking markets that experience significant population growth and offer abundant job opportunities. Why don't you give Ohio a shot? We have Columbus, Cincinnati, and Cleveland. Cleveland is truly known for its lucrative cash flow prospects. I personally focus my investments in Columbus though. Columbus has experienced significant appreciation and this trend is expected to continue in the future. This is largely due to the substantial investments made by major companies such as Intel, Honda, Nationwide Children's Hospital, and Wexner Medical Center, which have expanded their operations and created numerous job opportunities in the region.

    If you're interested, please let me know how I can assist you further!

    3Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Ralph Richardson

    Hi Ralph, one to consider would be Cincinnati, OH. Healthy mix of cash flow and appreciation, and depending on the part of the city you are in, can tip the scale of those 2 one way or another. Let me know if you are interested!

    [email protected]859-443-4952
    Sam McCormack Realtor
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    1Reply
  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    3y

    In Toledo, OH, you can regularly find C class neighborhoods with SFH that hit 1.2-1.4% with a little bit of rehab and 1% turnkey, and MF over 1%. Prices are very affordable, but I never expect appreciation to outpace inflation, so it truly is a Cash Flow town.

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  • Blake Novotney
    Real Estate Agent · Wilmington, NC · Member since 2021 · 166 posts · 116 votes
    3y

    I'd look at cities with some sort of driving factor (or multiple) such as larger colleges, beaches, good retirement benefits etc. There are many of those here on the east coast as well in the Carolinas and Florida! Here in Wilmington, NC where I am we have the perfect storm of all those factors above.

    3Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Houston Texas is one of the best cities for cashflow rentals when it comes to real estate investments. It has a long established history as an attractive option for investors, with both residential and commercial properties offering great returns on investment. The city's strong economic growth and diverse population make it an ideal location for property investors looking to maximize their profits. With low interest rates and plenty of options to choose from, Houston is a smart choice for anyone interested in investing in real estate. And as the city continues to grow, so does its attractiveness as an excellent destination for landlords who want reliable rental income over time. Investing in Houston real estate can be a very profitable venture - just make sure you do your research first!

    [email protected]832-889-5607
    2Reply
  • Najma Osman
    Real Estate Agent · Columbus, OH · Member since 2023 · 161 posts · 217 votes
    3y

    The midwest! Personally, I work in Ohio and I am constantly seeing good numbers in Cleveland and Columbus. 

    4Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!


    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/...

    I invest locally in Columbus, Ohio
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    4Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Hey Ralph, so I'm from a very similar boat, I'm from Portland Oregon and it's way too expensive to cash flow so I decided to move to Columbus Ohio and become a full-time real estate investor and agent here. Here's why I would recommend Columbus Ohio - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
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    4Reply
  • Allen Tackett
    Member since 2020 · 33 posts · 30 votes
    3y
    Quote from @Jimmy Lieu:
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Hey Ralph, so I'm from a very similar boat, I'm from Portland Oregon and it's way too expensive to cash flow so I decided to move to Columbus Ohio and become a full-time real estate investor and agent here. Here's why I would recommend Columbus Ohio - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here, let me know if you have any questions or want to connect!

     I've done a few deals this year, but I'm looking to buy one more in the next 30 days.  If you want to send me a few listings, please send me a PM.  

    At risk of sounding demanding, a few caveats.  I don't buy anything with capex or maintenance needed in the short term (first 3-4 years of ownership).  So I need newer roofs, HVAC, hot water etc.  I usually buy new construction but realize this probably isn't the market for those kind of deals.  I'm not really into full remodels of homes pre-1960 because while the cosmetics can look great, there's no way to know the quality of the work behind the walls.  Foundation issues are deal breakers.  I buy in A/B neighborhoods.  No C or D.  I self manage so I can't risk tenant headaches. I'm usually overseas so I need it to be passive.  In 18 years, I've never had a missed rent payment or eviction and I'd like to keep it that way : ). 

    Lastly, I do ask for accurate sellers disclosures.  Any major surprises at the home inspection and I usually just walk away.  I expect parties to be transparent and act in good faith.  I appreciate your time and would be happy to add OH to the markets I own in and work with you, but I don't want to waste your or my time so please do consider the aforementioned requirements.

    4Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    Hey Ralph, I'm also in California on the Central Coast.

    I invest solely in Detroit and have 12-doors there now that are KILLING it both in terms of cash flow and appreciation.

    I help others get started in that market as well if you want to chat just hit me up.

    3Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y

    Hey Ralph, I have brokered a lot of deals in Cleveland, the cash flow is king up there, however appreciation is lacking and seems to be along with the US national average. Whereas cities like Columbus have some cash flow, but tons of appreciation!

    2Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    3y
    Quote from @Ralph Richardson:

    My wife and I are looking to get started as real estate investors. We live in California and it’s to expensive here to cash flow.

    What's are some of the BEST CITIES in the USA to purchase SFR or Condo rental units that can still CASH FLOW?

    At the moment we are considering Huntsville Al and Al Paseo, TX

    But what other places should we be considering?

    Thanks!

    Panama City Beach:

    This market is the best mix for cash flow and appreciation. Tons of new construction and infrastructure coming to the area. The west side of Panama City Beach and Laguna is a nicer area than Thomas Dr.

    Address 125 Rose Lane, Panama City Beach

    Purchase Price: $1,020,000

    Grossing $132,000 a year

    Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100

    Insurance: $6000/yr

    Taxes: $2283/yr

    Utliities: $250-450/mo, avg maybe $350/mo

    Management: $0 (I always encourage self management)

    Repairs: 2-4%

    Purchase Price: $325,000

    Address: 232 Robin Lane, Panama City Beach

    Grossing $50,000 a year.

    Contract Services: $400 (average cleaning-ish/month) always depends on turn day frequencyCable/Internet: $100

    Insurance: $2000/yr

    Taxes: $2283/yr

    Utliities: $150-200 monthlyhoa: 950 every 3 months

    Management: $0 (I always encourage self management)

    Repairs: 2-4%

    Here are some properties we sold to investors or sent to buyers. 
    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    3y
    Quote from @Dave Poeppelmeier:

    In Toledo, OH, you can regularly find C class neighborhoods with SFH that hit 1.2-1.4% with a little bit of rehab and 1% turnkey, and MF over 1%. Prices are very affordable, but I never expect appreciation to outpace inflation, so it truly is a Cash Flow town.


    Agreed

    I've always said the same thing from day 1.

    We have noticed quite a bit of appreciation over the last few years.

    Especially in the 43612 (South of Sylvania Ave).

    Use to buy those deals super cheap and now I can see 2 bedders that are nicely renovated selling for $60,000+ on the MLS.

    When the cashflow deals disappeared nationwide, everyone seems to have come to Toledo lol

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Ralph Richardson
    Cleveland OH

    [email protected]614-412-4565
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