Cash flowing areas like Rochester, NY and Cleveland, OH

[Daniel V.]

Hi All,

I'm a first time poster and highly motivated to make my first of hopefully many investments (likely in a LTR). I would be an out of state investor and would work to find a great property manager to help me manage the property(ies).  I'm curious to get your feedback on areas that seem to provide good cash flow like Rochester, NY and Cleveland, OH.  

1) Is the general thought that these areas might not make the best investments for a buy and hold investor given declining populations and a potentially low likelihood of appreciation?  

2) Is there anything you'd recommend looking out for in either area? 

3) Are there any other cash flowing areas that you'd recommend looking into that you think provide greater potential for appreciation?

I appreciate your responses to any or all of these as your responses to date of been incredibly informative! 
 

[Josh Robbins]

Hi Daniel,

First, welcome to the world of RE investing.  I invest in upstate NY and after a few years out of the game i'm getting back into it in Rochester.  I'll admit, investing in Rochester is strictly about cash flow and equity build up for me. I do not count on appreciation nor do I expect it.  I am a long term buy and hold investor and while i'm sure over 20+ years the properties will increase in value, I don't build that in to any calculation.  Rochester is like most cities that it all comes down to location.  A class areas have appreciated tremendously and don't cash flow as well while there are still plenty of cash flow opportunities in B and C class areas.  And like other cities, Rochester has crime.  You can turn a corner and be on a "bad" street and that is something you need to be aware of.  I don't imagine Cleveland is much different.  Most importantly, as an out of state investor you'll need a team in place that you can trust and people that understand the area.  Good luck!