400$ cash flow markets

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400$ cash flow markets

Gp G.
Investor · Atlanta · Member since 2019 · 567 posts · 96 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
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4d

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 · 876 posts · 615 votes
    5d

    $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 · 126 posts · 82 votes
    5d

    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 · 567 posts · 96 votes
    5d

    James how to connect with you? I might be interested in Memphis area if numbers work as that is drivable distance from Atlanta

    0Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 165 posts · 55 votes
    5d

    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 · 567 posts · 96 votes
    5d

    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
    5d

    No first time, out of state investor will cash flow a penny on their first Memphis property

    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    4d

    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
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4d

    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 · 876 posts · 615 votes
    4d

    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
    4d

    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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  • Gp G.
    OP
    Investor · Atlanta · Member since 2019 · 567 posts · 96 votes
    2d

    I heard market like Ohio where it snow lot cash flow in summer good but winter it is horrible. I also heard some D neighborhoods are very bad and not safe to invest. I do not have any boots on ground in Ohio, Michigan, Missouri etc where numbers makes sense but not sure how much worth numbers only in summer on top of safely issues in D areas or c areas

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  • Gp G.
    OP
    Investor · Atlanta · Member since 2019 · 567 posts · 96 votes
    2d

    James when I tried to
    Message getting error can message only people I am connected. I already sent connect link earlier and it is not showing for me. Can you please check on your side

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 966 votes
    2d
    Quote from @Gp G.:

    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

    Atlanta can be tough when you’re chasing strong cash flow without sacrificing property quality. I’d consider the Midwest, where lower purchase prices can make the numbers more workable. The key is finding the right neighborhood and running the full expenses, not just chasing a $400 target.

    [email protected]614-418-6081
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  • Jim SternBusiness Member
    Real Estate Agent · ATLANTA Metro and Surrounding Counties · Member since 2025 · 31 posts · 12 votes
    2d

    Gp, here's the local answer: you can still find cash flow around metro Atlanta, but rarely $400 a door on a turnkey single family with 20–25% down at today's prices. The deals I see work usually come from one of three places: buying below market and forcing equity (BRRRR), small multifamily where you get more rent per dollar of purchase price, or putting more cash in. The only way to achieve that kind of cash flow out of the gate in ATL is through co-living or STR. Share your budget and down payment and I'm happy to talk it through by DM.

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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 581 posts · 242 votes
    1d

    @Gp G. The $400-per-door rule is a guideline, not a universal requirement. A solid property producing $250–$300 with strong reserves, low maintenance, and good tenant demand may be better than a risky property showing $400 on paper.

    Instead of jumping straight to D areas, widen your search to stable working-class suburbs farther from Atlanta’s core. Look near major employers, hospitals, logistics corridors, and established schools—but evaluate the neighborhood block by block. You may also find better numbers with small multifamily properties, homes with rentable accessory space, or properties where light improvements can raise rent.

    Make sure your cash-flow number includes vacancy, repairs, capital expenses, management, taxes, insurance, utilities, and HOA—not just the mortgage. Older homes, crawlspaces, and septic systems aren't automatic deal-breakers, but their inspection and reserve needs should be reflected in your offer.

    I’d set a minimum return based on your own goals and risk tolerance, then compare cash-on-cash return, debt coverage, condition, and long-term demand. Don’t force a $400 target if it pushes you into a property or neighborhood you wouldn’t otherwise own.

    [email protected]
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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    1d

    Gp, I think the bigger question is whether you’re looking for $400 of cash flow because it’s actually the best return on your capital, or because $400 is the number everyone keeps throwing around.

    I'd compare markets based on the full picture: purchase price, realistic rent, taxes, insurance, vacancy, repairs, CapEx, and financing. A property producing $400 after the mortgage isn't necessarily a better investment than one producing less monthly cash but requiring significantly less capital or having better long-term fundamentals.

    I’d also layer in the tax side once the property makes sense operationally. Depreciation and other tax benefits can improve the after-tax return, but I wouldn’t use the tax savings to justify a property that doesn't work before taxes.

    Since you’re already familiar with Atlanta, I’d probably focus on finding markets where the price-to-rent relationship and overall fundamentals give you enough room without having to move too far into lower-quality properties.

    Happy to connect!

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1d

    @Gp G. we've responded to several of your numerous posts about searching for needle-in-a-haystack returns - and you NEVER engage.

    Are you a real person or just someone's AI-bot?

    [email protected]248-209-6824
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  • Gp G.
    OP
    Investor · Atlanta · Member since 2019 · 567 posts · 96 votes
    1d

    @Drew Sygit I am real person. Without cash flow no point doing rentals. Cash flow in wrong location wrong market no point to do. I am trying to figure out that fine balance. I appreciate all feedback that way I do not burn my fingers with 200k mistake and repent later

    0Reply
  • Ryan BrownPro Member
    Real Estate Agent · Louisville, KY · Member since 2022 · 54 posts · 11 votes
    1d

    @Gp G. I'm an agent and investor in Louisville, and since a couple of your concerns were winter and not having boots on the ground, I'd put Louisville on your list as a middle option between Atlanta and Memphis.

    I'll be straight with you first. Henry's right that $400 a door on a single family with 20 to 25% down is tough almost anywhere right now, and Louisville is no exception. Where it works here is small multifamily. We have a lot of duplexes and fourplexes in solid working neighborhoods, not just D areas. Right now there are about 50 duplexes on the market with a median around $260K, and fourplexes are running around $394K. That's the kind of property Henry is talking about, where four rents are carrying one mortgage.

    On the weather, Louisville averages around 13 inches of snow a year. Columbus gets about twice that and Cleveland gets around 64. We get real winters, but not the kind that wrecks your numbers every year. It's also about a 6.5 to 7 hour drive from Atlanta, I-75 to I-65, so you could come up, see a few properties in a day, and head back.

    The market has also shifted toward buyers. Inventory is up close to 40% from last year in the city, and about one in four active listings have been sitting 90+ days. A lot of those sellers will negotiate now in a way they wouldn't have a year ago, and that's how you actually get to your cash flow number instead of just hoping for it.

    On the older houses, a lot of our duplexes and fourplexes are older brick. Honestly, old isn't the problem. Deferred maintenance is. I own rentals here myself, including two rent-by-the-room buildings, and I sold a 10-unit in August, so I'm happy to tell you which streets I'd buy on and which ones I'd skip.

    If you send me your budget and down payment, I'll pull a few real fourplexes and run them with actual taxes, insurance, and vacancy so you can see what the cash flow looks like here before you make the drive.

    [email protected]502-889-0122
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