The best areas in to invest in SFH's from afar

[Dan Smucker]

I live in the Bay Area and never was able to jump in the market here - now it's insanely expensive. I need to invest in other areas outside of the Bay Area such as Dallas, Charlotte, maybe Tampa . . .Houston? I would like positive cashflow but more importantly I need a tax break (which most people don't mention here). 

Even though the market is hot almost everywhere, where is a good place to start with my first investment rental where I'm looking for positive cashflow, appreciation and homes in the $120k-$200k range?

[Clayton Mobley]

@Dan Smucker absolutely, use BP as the amazing tool it is. Search the forums for reviews and then reach out to people via PM to get the full story. Referrals from people you really know are a great way to start as well, though if you need to expand your referral pool (like if the people you know aren't looking at the same kind of investments) BP is the place to go.

As an FYI, the average rent for our props is $950, so certainly not CA rents, but not CA prices either. In general, our first year returns for financed purchases range between about 17-20% including cash flow and loan paydown, and go up from there as tenants pay more and more principle each year. Return calcs do not include depreciation deductions or any kind of appreciation. Birmingham is like any other market, there are good areas and bad. Regardless of where you invest, working with people who really know the micro markets is crucial to successful investing.

Good luck finding the market and the team for you - I'm sure BP will be extremely helpful in your research.