Buying rental properties in a flat or down market

[Terry Fox]

Looking for some advice on buying my next property.

I live in Connecticut where property prices are flat at best, and probably declining a bit. I cannot really see myself trying to manage an out of state property, so stuck with Connecticut houses if going to invest. So should someone buy a cash flow yielding property in a market that is flat or declining?

A typical example is a $330K Duplex, with combined $3000/month rent. $8K for property tax and $1K for insurance. Total P&I plus taxes and insurance is $1800/month. So the cash flow is good. But is it worth it if you don't believe the property will retain its value?

Also, as far as exiting the property someday, Connecticut charges a 1% conveyance fee when selling the property.

[Michael Noto]

@Terry Fox I'll look at this two ways as someone who works with investors & who is an investor:

As an investor: There are plenty of deals multi family wise in the Hartford County area (non war zones of course) that you can buy at a good price that will cashflow. So for me they are combo plays if you will, I know I will be getting the cash flow monthly and I am getting them at a good enough price where I will be able to get some appreciation dollars upon selling, whenever that is.

Advice to my clients: I tend not to advocate investing strictly based on appreciation (even in a desirable place like west hartford). If you buy in decent to good areas, and can get a good deal doing so purchase price wise why not invest for the cash flow and any appreciation on the back end is gravy.

In the end though, with my clients I only give them my opinion when they ask, everyone's vision and goals are different, those are just my opinions on the Hartford County market.

When it comes down to it appreciation plays are too risky IMO especially a 10 year one.