400$ cash flow markets

Investor · Atlanta · Member since 2019 · 539 posts · 92 votes

hi,
Someone mentioned no need to do deal unless 400$ cashflow after mortgage loan etc which is next to impossible in my backyard Atlanta. Where else I can focus around Atlanta to get 400$ without getting into D locations horrible properties on septic tanks, Crawlspace’s built before 1970 etc. Please advise

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

You can get that anywhere in the United States. The component you missed in your post is: How big is your down payment? Also, you have to recognize that most areas that produce the most cash flow on paper have the worst depreciation. If you look back on the last 25 years of those markets compared to the markets that you're passing on that look like they don't have any cash flow, take a guess where you would have been better off investing.

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 842 posts · 605 votes
2d
$400 a month is not a market problem first. It is a price-to-rent problem.
Run the 1% rule backwards. In Memphis I buy single-family under $100K, and for 3BR+ Section 8 rents run $1,395 to $1,950. At those numbers the rent can carry the payment and still leave room, because the purchase price stayed low. If you are paying $200K+ for the same rent, no area around Atlanta fixes that math — the payment eats the $400 before taxes, insurance, vacancy and repairs.
So do not chase a zip code. Set a ceiling: rent has to be at least 1% of the all-in price, and the house has to be a clean 3BR+ that a working family wants. If Atlanta will not give you that, the choice is a lower purchase price somewhere else in the South, or a smaller cash-flow target in Atlanta. You cannot have both at today's prices.
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Hersh ShahBusiness Member
Realtor · Atlanta, GA · Member since 2016 · 124 posts · 82 votes
2d
You’re right, achieving that level of cash flow is nearly impossible in today’s market given current home prices and interest rates. I’m not sure who shared this with you, but are they really netting $400 per month after all expenses? If so, are they doing it in our market with the same leverage you plan to use or did they do this is 2020 when rates were stupid low?
You can boost cash flow by:
- Raising your down payment from the minimum 20 % to a larger amount (e.g., 30%).
- Securing a lower interest rate through seller‑paid concessions.
- Pivoting to a multi‑family property, which usually outperforms single‑family homes.
- Pivoting to co-living properties.
- Considering new construction and negotiating a below‑market rate via seller or lender‑paid closing costs. (Keep in mind that, as an investor, you’ll still face loan‑level pricing adjustments.)
Even a 1 %–1.5 % reduction in the interest rate can save you hundreds of dollars each month, potentially turning a negative cash‑flow scenario into a positive one.
Most importantly, remember that Atlanta is primarily an appreciation market, unlike the Midwest, which leans toward cash‑flow investing. Define your strategy first, then choose the property and location that align with it, rather than relying on an arbitrary $400‑per‑month figure.
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Gp G.
OP
Investor · Atlanta · Member since 2019 · 539 posts · 92 votes
2d
James how to connect with you? I might be interested in Memphis area if numbers work as that is drivable distance from Atlanta
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Ametria Chaney
Realtor · Memphis, Shelby County · Member since 2026 · 119 posts · 38 votes
2d
Jumping in as a Memphis-area Realtor since Memphis came up in this thread — James's framework is exactly how I'd tell you to think about it. Cash flow is a math problem first, not a market problem: rent has to clear your all-in costs by a margin you're comfortable with, so set your buy box around the numbers instead of falling in love with a zip code.
One thing I'd add: if you're looking at a market a few hours away, local eyes matter more than most people expect. An investor-friendly agent on the ground can tell you which streets rent fast and which ones sit — that's hard to see from a spreadsheet. Run the numbers conservatively, budget for surprises, and don't chase a market just because the headline numbers look good.
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Gp G.
OP
Investor · Atlanta · Member since 2019 · 539 posts · 92 votes
2d
I heard online one investor bought property in Memphis next day his HVAC stolen has to spend 10k to replace. I do not want to make those types of mistakes buying in those types of areas. Some areas of atlanta I do not buy as more thefts not safe. Is Memphis more safer less thefts than atlanta or less or cannot compete?
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2d
No first time, out of state investor will cash flow a penny on their first Memphis property
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1d
Good question, Gp. The $400 per door number gets thrown around a lot, but it's a high bar in almost any metro right now, so I wouldn't treat it as a pass or fail line. What matters more is what's left after vacancy, repairs, capex, taxes, insurance and management, and whether the deal still works at a conservative rent. Plenty of solid deals net well under $400 and still make sense because of the equity and stability behind them.
If you're open to looking beyond Atlanta, Columbus, Ohio is worth a close look for exactly this reason. A lot of the deals I see there hit the 1% rule and still cash flow after every expense, and most come with $20K-$30K of built-in equity at purchase. Single families mostly run $120K-$180K, and in my experience a realistic net is roughly $100-$300 per door per month after everything. Landlord-friendly rules and evictions that wrap in about 30 days when uncontested are a big part of why it works for people investing remotely.
Happy to connect and compare notes, and I can point you toward investor-friendly lenders, property managers and contractors in Columbus if you get that far.
[email protected]614-300-7535
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1d
You can get that anywhere in the United States. The component you missed in your post is: How big is your down payment? Also, you have to recognize that most areas that produce the most cash flow on paper have the worst depreciation. If you look back on the last 25 years of those markets compared to the markets that you're passing on that look like they don't have any cash flow, take a guess where you would have been better off investing.
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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 842 posts · 605 votes
1d
Appreciate it — easiest way to connect is right here: send me a message on BiggerPockets and I'll see it. On the numbers, my box is simple so you can screen fast: Memphis single-family, 3BR or better, in ZIPs like 38109, 38114, 38116, 38118 and 38128. I buy under $100K, and the house has to rent in the $1,395 to $1,950 band for 3BR+ so it clears the 1% rule against the all-in price. If a deal in front of you doesn't hit those numbers, it isn't a fit, no hard feelings. On the HVAC story — vacant houses are targets anywhere, which is why our turns run on a tight schedule and houses don't sit empty. Send me what you're looking at and I'll tell you straight if it pencils.
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
1d
You either need a time machine or to buy in a horrible area if wanting to cashflow $400 on a single family, ignore the fluff from agents about their home city. Check out 4 unit properties, these cashflow in many good areas through out US at 25% down. It takes more capital but is well worth it. You also get some scale with 4 units and the rent increases each year quickly increase the cashflow in a very noticable fashion.
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