All Forum Posts by: Dan Rowley

If you look at the recent historical trends it's not hard to identify which markets are 'growth' and which are 'cash flow' type markets, and there are some that show characteristics of both.  Indy would be much more of a 'cash flow' market where you can get better cap rates, but appreciation potential is more limited.  It's hard to know if the article got the projection right quantitatively, but Indy has not been a growth market and so directionally that part looks correct.

Macro-level, the drivers to to growth markets are population shifts that are ocurring and a lot of people in northern states/cities have relocated to TX, FL, GA, NC, etc.  And where there is marked housing shortages as in California, that too has driven prices up even if the population is not expanding as quickly.  Where population is not growing fast  (i.e. Indianapolis) and there is no supply constraint, then the appreciation will be limited.  You can also look at the new build permit statistics by city to see where the building is ocurring and that will be key indicator as to which markets are growing rapidly.

It would be hard, impossible really, for anyone to help diagnose this without info on the listing/price/etc..

Justin, 

yours is a very broad question, so I'd suggest that you seek out a local 'investor friendly' KC realtor who knows the market/neighborhoods and can steer you in a direction that may meet your objectives.

Dan

There are probably a small handful of places you could find these type of economics (pure cash flow and little to no appreciation potential unless the cities really rebound) = Detroit and St. Louis would be two of the larger cities and there are a number of smaller rust belt cities also.  

It's due to a combination of negative growth rates (people moving out) and crime and urban decay, etc.  And if nobody has bitten for this listing @ 500 days that really says something.  There may be some ongoing cash flow but I'd model in a whole bunch of conservative estimates: i.e. higher vacancy, rehabbing, much higher than normal capex/maint, etc. and then ask yourself if it's the type of investment that you'd want to sign up for (C- or D class I'm guessing... in terms of ongoing headaches).  

@Derek Diamond, sorry also wanted to ask you is there a company you are working with for Dayton that you would recommend.  I'm not locked into Cleveland and will consider Dayton, Columbus, Cincinnati, and other cities in the regaion with favorable cash flows + investment profiles.

thank you @Derek Diamond

I realize this thread is about a year old, but I'm wondering if anyone has 'current' positive feedback on a cleveland turnkey investment company.  I'm interested A/B neighborhoods only so typically suburbs.  

thanks!