Finding Positive Cashflow

[Joey Brantley]

So I got a lot of great feedback on my Input for choosing a market post from a month ago. I started seriously looking into properties in the Greater Cleveland, Indianapolis, and DFW markets. 

To share the details again. I'm a first-time buyer, Veteran, hoping to use my VA Loan to get into my first property and live in for 1 year before turning it into a rental. I'm very sensitive to heat and humidity so I'm not really considering the Southeast. (I know, DFW can be quite hot and humid, but it's home.) My budget is up to $500k.

I'm attracted to Indy and Cleveland for the prevalence of multi-family properties that I can potentially house hack. But I've found that most of the deals that cashflow are in the less than desirable neighborhoods, Cs and Ds. While after reading David's Long-Distance Real Estate Investing book, he suggested only investing in decent areas so as to avoid headaches down the road. I guess I'm just confused on what I should do there.

For DFW, it's completely different story. I grew up there, so it has a major intangible draw for me being close to friends and family again. But aside from that, I can't see anything CLOSE to cash flowing as an LTR in DFW, only STR or MTR, which I am open to.

I just could use any guidance or advice here. Anyone with knowledge of those particular markets, or just share your perspective. Thanks community.

[Nicholas Misch]

Quote from @Alicia Marks:

Hi Joey,

I am in an interesting position in that I've lived in and owned property in all 3. I would not be as likely to invest in Cleveland because the neighborhoods can vary greatly, and most of the multifamily options are in rougher areas. Indianapolis has some better options, especially if you want to look "outside the circle" for great cash flowing options. It would also fit your weather requirements. I'd honestly live in Indy again, but not Cleveland. DFW also will have similar issues to Cleveland, but the advantage it would have over Cleveland would be the value increase you won't see. If you're open, a househack would likely be much easier than trying to find a multifamily in a decent area.

 I am sorry to very respectfully disagree as I was born and raised and have lived most of my life in Cleveland and the subs, there are many 4 units and smaller in the B class neighborhoods like Parma, Parma Heights, Brookpark, Fairview Park, North Olmsted and many others (even several areas of Cleveland proper like Westpark and Old Brooklyn) that would make great cash flowing and equity building house hacks. With @Joey Brantley house hacking and using a VA he would be in the very best position to do that in Cleveland and the Subs. Yes he would however want and need someone who is an expert in the area to guide him on what neighborhoods would work and which to stay away from.