Where do I buy my first cash-flow positive rental property?

Question

My husband and I live in CA and have purchased 2 homes for ourselves so far. We want to start investing out of state in the $50-100k range. Single family or duplex. With decent schools and stable employment. Not interested in apartments. Looking to hold for a while so cash flow positive would be helpful. So far, we’ve looked at Memphis, TN. Any suggestions? Thank you!!

Chris Stroup · Answer

Fayetteville, NC is a very good market for cashflowing rentals. There is a large military base and a couple of large hospitals here so employment is stable. You can purchase a rental with 60-80k that will cashflow. The market is crazy right now but there are still deals to be found. Happy to talk to you if you want to learn more.

Dan DiFilippo · Answer

@Leyla Ahmadi definitely give Chris a call! He's the man!

Laura Alamery · Answer

@Leyla Ahmadi Welcome to the community! I agree. You get more for your money (and cash flow) in the Midwest. Memphis is very good. I personally invest in St Louis and I have real estate investing students from California who also invest in St Louis. You can definitely purchase properties there for less than $100k. We have a house for sale as a rental there for below $100k in a good part of town. Let's connect!

Robert Shortsleeves · Answer

@Leyla Ahmadi Fayetteville, NC is a really good place for out of state investors. I’ve been doing some direct to seller marketing for a while and I’m able to find pretty good deals. Just closed on my 10th unit and I’m super happy with the results thus far.

We don’t benefit from a lot of appreciation but plenty of cash flowing deals for cash buyers.

Jennifer A Barry · Answer

https://www.roofstock.com/inve...

Andrew Park · Answer

@Leyla Ahmadi Midtown is a good area. It, like every other part of Memphis, is a street to street location. Meaning, we managed property one street over from Young Ave (the street) and had issues with renting it. However, there are many great things happening all around Midtown that make this area great to get into now. There is plenty of construction happening around Overton Square. The people are great too! Many good places to work and just a desirable place to live in general.

Leyla Ahmadi · Answer

@Andrew Park Absolutely! Thank you. Any areas you’d recommend I look into? Midtown seems nice.

Leyla Ahmadi · Answer

@Jennifer A Barry thanks for the tip! I will look into it.

Andrew Park · Answer

Memphis is a great market still! Having boots on the ground knowledge in the area you are investing in is key to success. Let's connect if you are wanting to learn more.

Jennifer A Barry · Answer

Have you checked out Roofstock? I hadn’t heard of it til recently but am really liking the concept, especially for purchasing and renting homes from afar. Still doing my research, and hoping others here have some guidance or experience with it, but may be worth looking into!

Where do I buy my first cash-flow positive rental property?

Where do I buy my first cash-flow positive rental property?

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