How to find cash flow markets?

[Ali Saad]

Hi there! 

I live in SoCal and it is extremely difficult to find any cash flowing properties. I'm interested in investing out of state, my criteria is:

- $80-120k purchase price (will go up to $200k if needed, but would rather have a lower purchase price and acquire more properties)

- Cash flow rental

- Pro landlord state

I'm not extremely picky on the area itself - I've done some research myself yet I can't pinpoint which market to enter. From what I've seen, it looks like the mid-west/south best fits my criteria. Does anyone have any recommendations on markets or advice on how they picked their market?

[Bryce Jamison]

I'd highly advise staying away from properties in the 80-120K range (more specifically in the C, D, & F range). These properties always have the best ROI on the spreadsheet, but the spreadsheet doesn't have a formula for the type of renters you're going to get in these properties. That increases cash flow comes with substantial more risk of tenants not paying, tenants causing significant damage, and potential criminal activity. On top of this you'll be out of state which can makes these issues much more difficult in terms of time and money to solve.