How to cashflow in this current market

Question

Any property on mls in Tempe is 400k and above... even if you get a place for 300k and rent it out for $2100 a month it seems like a bad deal for cash flow.  Is it just me or does it seem like properties are overpriced given current state of interest rates... even if I got a 300k house that needs 30k in repairs and then say refinance and I'm at $1800 payment on a 30 yr at 6.5% with $66k into the property.   $2100 in rent and your still practically at break even cashflow.   Just seems like a crappy return for fixing up a property and then renting it out.  Am i missing something here?

Viktor Singh · Answer

I think you are correct. Given the current environment, it is tough to get cash flow. I think waiting is probably a better option. IMO, we will continue to see corrections as rate increase.

Andrew McGuire · Answer

@Joey Chrisman

Its all about the criteria you are looking for and how you manage them. I'm looking for non HOA, ample parking, good areas, opportunity to split or add units. I also rent room by room or as STR. It has been tough but with prices dropping I'm seeing decent cashflow deals. Its more work but you can find cashflow for sure.

Nicholas L. · Answer

@Joey Chrisman I don't know this specific market, but in general, that sounds right to me - MLS properties just generally don't cashflow right now.

Ari Shiffrin · Answer

I see cash flow opportunities in Tempe regularly when I’m browsing the MLS for my clients, but they almost always require some creativity, at least if we’re talking about strictly long term rentals. I have a perfect example of one on an active listing that I was working through with one my clients earlier today in fact. PM me and I’ll share the details with you.

How to cashflow in this current market

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