Markets currently with best cash flow for long term multi family housing?

[Kristina Krich]

Hi, I'm a newbie trying to figure out where to put my money.  I am a homeowner with some cash flow but not a ton.  I live in So Cal so it will have to be somewhere out of state.  I've searched the forum and a lot of people promote Ohio.  I'm curious if it really is an upcoming market or a bunch of pros from there happen to outweigh other states on this forum.  It seems like the western states are out of reach for me, but curious about Utah? Arizona (probably late to the party there?)... Driving distance would be good but not opposed to go further east if need be.  Just want a landlord friendly state and a place with better odds of good tenants! Any advice out there???

[Josh Young]

@Kristina Krich if you want a market with a population growing at 6% annually I would recommend new builds in Casa Grande, AZ. These cost $290-320k and rent for $1700-1900, put 30% down and it will cash flow break even in year one, you will also have to spend about $8-12k per property in landscape, appliances, fans, blinds. We have super low property taxes and insurance (combine about $2k per year), and we are a landlord friendly state. You will have basically no cap ex or maintenance expense and will be able to raise rents by the time any of these expenses start. The builders offer credits to buy the rate down, so these make sense. Rents and property values will continue to increase here as our population is increasing and good paying jobs continue to move to this area. Full disclosure, I help investors with this exact strategy and I manage the properties for them as well, so I make it super easy.