Best market for beginner searching for cash flow?

Real Estate News & Current Events
5yFollow

Best market for beginner searching for cash flow?

Arthur Sorochkin
Member since 2021 · 11 posts · 6 votes

Hi everyone! I am new to BP and so excited to be here, having read a few of Brandon and Josh's books. My wife and I are both teachers in NYC beginning our journey on REI. I am interested in the route of starting by earning passive income/cash flow from one of the cheaper out of state markets with less stress on short term or forced appreciation. What would you say is the best area to look at for long term rentals and good cash flow for a duplex in the 250k range? Any help would greatly be appreciated!

4Reply
76 views

Most Popular Reply

Allen Williams
Realtor · Jacksonville, FL · Member since 2019 · 95 posts · 87 votes
5y

@Arthur Sorochkin

Good Morning Arthur and good for you and your wife to getting started in real estate. I just helped one of my customers purchase a duplex for 175K, put in overall 10K of work for both sides, and renting 1900/mo combined rent. I’m in Jacksonville FL where prices are reasonable. We also have a strong rental market, landlord friendly state, and governor who has kept us open through the pandemic except a handful of weeks which has been a huge plus for people to stay working helping the overall economy and investors.

2Reply
See this reply in the discussion

29 Replies

Jump to latestLatest
  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    5y

    Plenty of places right next door in CT. Go online and look at the different cities, average rent, average home prices. There is a ton of two and three families all over the state and it's close enough to your current location. It's always easier managing projects and tenants when they're close by!

    [email protected]413-348-8346
    Freedom Capital Funding, LLC523 Reviews
    WebsiteView Page
    1Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    Thank you so much Matthew.  I will research Connecticut.  I have a couple of friends who live there in Greenwich but their neighborhood is super expensive.  Any particular city in mind?

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    5y

    Try to invest close to where you live so you can go drive by and or manage any renovation/turns.   My best advice for someone starting out is invest in a town that has well rated university.  I invested in Eugene OR that has University of Oregon - the vacancy rate there is less than 3% and during covid the percentage of tenants not paying was very small.  Was a great market!  

    When you find your university town then buy on the outskirts of "campus" so you can get faculty or students that want quiet.  I used to lease up my units 9 months in advance!  Never had an vacancies!  

    Good luck! 

    2Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @Mary M. Thank you for the suggestion. I have given this some thought. The NYC area and surrounding areas are far too expensive, but upstate NY has many universities and much cheaper property. Aren't there concerns with renting to college students who may treat it like a party town?

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    5y

    @Arthur Sorochkin I never had that issue in my 10 unit building during the 5 years I owned it....  But it was a mile from campus and was a nice, new build property.   It also was a few blocks from a very good high school....  but you need to not buy right on campus...  and then market to students that are serious and want to be away from party town. :) 

    0Reply
  • Jaysen Medhurst
    Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    5y

    Yeah, $250k ain't gonna fly in Greenwich, @Arthur Sorochkin. I think CT is a great market. If you look further out East or in Central CT, you may find some good options.

    0Reply
  • William CollinsPro Member
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    5y

    @Arthur Sorochkin  I invest in Connecticut, and there are viable markets.  My question is that with you both being teachers in New York- are there any programs that would help you become first-time home buyers in house hackable locations near you.   I was just listening to the Rookie podcast and thought that it would be great for your situation if you could find that duplex, triplex, quad near to your work which would net you the return of defraying your house expense.  Also I would highly recommend investing along the metro lines. They are commerce life lines and people always will be looking for housing near the stations. 

    0Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y
    Originally posted by @William Collins:

    @Arthur Sorochkin  I invest in Connecticut, and there are viable markets.  My question is that with you both being teachers in New York- are there any programs that would help you become first-time home buyers in house hackable locations near you.   I was just listening to the Rookie podcast and thought that it would be great for your situation if you could find that duplex, triplex, quad near to your work which would net you the return of defraying your house expense.  Also I would highly recommend investing along the metro lines. They are commerce life lines and people always will be looking for housing near the stations. 

    0Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @William Collins thank you for the reply! We own a home already and actually are in the process of hopefully moving. We cannot house hack. I appreciate the suggestion though and the advice to go by metro lines. Any city in particular you recommend in Ct?

    0Reply
  • William CollinsPro Member
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    5y

    As I invest in Central CT,  I am going to go out a little bit on a limb- but I know people cashflowing in any of the towns on the Metro line.  Bridgeport, New Haven, Derby Shelton, Ansonia

    0Reply
  • Blake ParkBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 126 posts · 121 votes
    5y

    I would check out Columbus Ohio. 

    [email protected]614-762-9232
    1Reply
  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y

    Hello Arthur. One of the best spots to invest in multifamily is Toledo, Ohio. We have long term tenants, single workers and families, and we have a great healthcare system which brings in a lot of traveling nurses and doctors. Hard to have vacancy given that and the shortage of housing in today's market. I'm always willing to chat even if you decide to invest elsewhere. Best of luck to you.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Arthur Sorochkin:

    Hi everyone! I am new to BP and so excited to be here, having read a few of Brandon and Josh's books. My wife and I are both teachers in NYC beginning our journey on REI. I am interested in the route of starting by earning passive income/cash flow from one of the cheaper out of state markets with less stress on short term or forced appreciation. What would you say is the best area to look at for long term rentals and good cash flow for a duplex in the 250k range? Any help would greatly be appreciated!

    Columbus, Cincinnati, or Cleveland Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Christie Duffy
    Real Estate Agent · North Jersey · Member since 2016 · 76 posts · 29 votes
    5y

    @Arthur Sorochkin - there are so many opportunities in NY and NJ - nearby! I know many think it’s an expensive market and it is but there are niche areas where you can buy for this price range. I own 3 duplexes in NJ 30 min or less from NYC that we bought for $225, $225 and $330. All within the last 3 years. The $330 one I bought longest ago. I recently bought a house walking distance from 2 stops direct train to penn station for $157 - and flipped it. I only buy in great neighborhoods with fantastic tenants and top of the line rents. I just bought a $410k building we’re turning into 8 units in NY. Don’t look elsewhere just because you don’t think there are no deals locally... there are. Even in this market. Had a realtor call me today for an on market offer I made $40k below ask- he wants to talk - maybe cause he now likes my under ask offer? It happens. Happy to chat with you one on one if you need help.

    1Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @Christie Duffy Thank you so much for the thoughtful reply! I would be happy to speak further about the areas/properties. Any help is appreciated!

    0Reply
  • Allen Williams
    Realtor · Jacksonville, FL · Member since 2019 · 95 posts · 87 votes
    5y

    @Arthur Sorochkin

    Good Morning Arthur and good for you and your wife to getting started in real estate. I just helped one of my customers purchase a duplex for 175K, put in overall 10K of work for both sides, and renting 1900/mo combined rent. I’m in Jacksonville FL where prices are reasonable. We also have a strong rental market, landlord friendly state, and governor who has kept us open through the pandemic except a handful of weeks which has been a huge plus for people to stay working helping the overall economy and investors.

    2Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @Allen Williams Thanks for the info. I love Florida, but it might be a bit too far. I would like something drivable.

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Arthur Sorochkin

    You can find duplexes below that in almost every Midwest market throughout Ohio, Indiana, etc. I recommend to invest in a market you feel comfortable in and have a good local team who can help guide you (agent, lender, contractor, property manager).

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    1Reply
  • John Tobin
    New City, NY · Member since 2021 · 19 posts · 4 votes
    5y

    Hey @Arthur Sorochkin I'm in the same situation as you, but in Rockland County and there isn't anything that has worthwhile cashflow here either. I have been looking into Orange county and the market is definitely better for cashflow and smaller downpayments also. I'm still researching what towns make sense from a low vacancy perspective.

    Hey @Christie Duffy I haven't even looked into NJ because I thought it was too cost prohibitive, but those numbers are reasonable. Could you tell me what towns you are investing in?@Remington Lyman

    0Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @John Tobin If you find a local market for small multitamily homes, let me know!

    1Reply
  • Christie Duffy
    Real Estate Agent · North Jersey · Member since 2016 · 76 posts · 29 votes
    5y

    @John Tobin sure are you willing to do renovation work? I have invested in bloomfield a ton (where I live in Essex county), fantastic market and huge growth potential. Morris county is a place you can get a deal in this range with less or no renovation work but a little farther from nyc and lower rents but still solid. Union county as well has good opportunities in Rahway, linden but renovation probably needed at this price point. Southern Bergen county has some lower priced multis in towns like little ferry. Passaic has cheaper multis in Hawthorne, prospect park. I mean there are lots of places where you can find cheaper multis and of course it’s relative meaning you need to make sure it will appraise for higher if you’re renovating. You can DM me if you’d like me to send you some stuff available in any of these markets. I’m an investor first but also a licensed realtor.

    1Reply
  • Christie Duffy
    Real Estate Agent · North Jersey · Member since 2016 · 76 posts · 29 votes
    5y

    @Arthur Sorochkin sure Arthur shoot me a dm lets connect

    0Reply
  • Samuel Whelan
    Lender · Cheshire, CT · Member since 2019 · 19 posts · 25 votes
    5y

    @Arthur Sorochkin as a few others have mentioned, CT has some great markets for cash flow. New Britain, Bristol, Meriden, and Wallingford will have homes within the budget you mentioned, but with those towns you'll want to check out the neighborhood first and make sure you're putting your investment somewhere you'll feel safe leaving it. Southington can be a little pricier than the others but is overall a much safer town to invest in. If you up your investment amount then New Haven can have good cash flow too but it'll definitely cost you more.

    0Reply
  • Arthur Sorochkin
    OP
    Member since 2021 · 11 posts · 6 votes
    5y

    @Samuel Whelan Thank you!

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Arthur Sorochkin:

    Hi everyone! I am new to BP and so excited to be here, having read a few of Brandon and Josh's books. My wife and I are both teachers in NYC beginning our journey on REI. I am interested in the route of starting by earning passive income/cash flow from one of the cheaper out of state markets with less stress on short term or forced appreciation. What would you say is the best area to look at for long term rentals and good cash flow for a duplex in the 250k range? Any help would greatly be appreciated!

     Hi Arthur, welcome to the site! I would check out the Ohio market. Columbus, Cleveland, and Cincinnati would all be some good options under the $250K range. I'd be happy to chat if there's anything else I can help with! 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free