All Forum Posts by: Valerie Peabody

Quote from @Valerie Peabody:

Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.

If you're looking for more cash-flowing deals, I’d recommend exploring landlord-friendly markets like Texas, Florida, or even parts of Arizona where rent-to-price ratios are stronger. Since you already have experience with ADUs, you might also consider markets that encourage them, like San Diego, where adding an ADU can significantly boost cash flow. Focus on off-market deals and network with local wholesalers or property managers to find better margins. Those connections are gold for passive income opportunities!

Hey Valerie, welcome and congrats on turning your property into a rental! If cash flow and passive income are your goals, a lot of investors are exploring markets like the midwest where prices are lower and returns are stronger. I work with many out of state investors, especially from California, who are priced out of their local markets and looking for better opportunities. I’m originally from NYC myself, so I definitely understand what it’s like to be in a high cost, competitive market with limited deal flow.

Quote from @Valerie Peabody:

Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.

 Hey Valerie. Welcome to BP! I'm originally from San Francisco and glad to see more Bay Area investors on here! 

I'd suggest looking into cities with good growth potential (both economic and population growth). Landlord friendly states are also a huge plus compared to what I've seen in the Bay. 

Happy to answer any questions you might have! 

HI Valerie, glad to have you as a part of this awesome community!

-Julio

Hey @Valerie Peabody!

Sounds like you’ve already got a great start with your rental in Pacheco and some investing experience under your belt. If you're looking to expand into more cash-flowing deals and build passive income, it might be worth looking outside of California, especially in markets where the numbers still make sense. A place like Memphis offers solid rent-to-price ratios, affordable entry points (often under $150K for renovated SFHs), and strong rental demand driven by major employers like FedEx and St. Jude. It’s a great option if you’re looking for fully managed, turnkey properties that provide consistent cash flow without the day-to-day headaches. Happy to connect and share how other investors are scaling passively in markets like this!

@Valerie Peabody,

Welcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!

Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.

A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:

- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem.
- South Bend, IN – Underrated market with solid returns and affordable small multifamily options.
- Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market.
- Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.

If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.

Happy to help or answer any other questions!

Best of luck,

Melissa