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Updated over 3 years ago,

User Stats

51
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53
Votes
Sarp Ka
53
Votes |
51
Posts

Best triplex/4plex cities to move

Sarp Ka
Posted

Hello there,

TL;DR, I want to invest $100,000 per year as downpayment on 3/4plex as a primary resident, which city can give the best cashflow?

I've recently been looking for houses for investment purposes, however as lenders requiring 25% downpayment, it's too much money to invest. Since my work allows me to go remote, and work form anywhere I can use that to optimize living in that area. My current area is terrible when it comes to real estate investment and looking for any cash flow positiveness.

Also since I can only buy a single property per year as a primary resident, by utilizing 10% downpayment, I'd like to maximize as much cashflow as positive rather than just ROI. So if there's a property A, worth 500k; and generating 10k cashflow; property B is worth 800k and generating 15k cashflow positive; I'd still go for property B.

I didn't include SFH because I don't need to buy a super large house and not be able to rent any part of it (I am not keen renting it room by room or sharing common spaces). I also didn't consider duplexes since I don't think they'll generate as much cashflow as triplex/4plex. Also anything more than 4 units (5plex+) is also out of question, since I won't be able to get competitive rates with 10% downpayment.

My strategy to invest each year $100k downpayment to a 3plex/4plex until I can make $3500/mo cashflow positive income. At the end of each year I would simply keep the property and buy a new one as primary residence.

As for the area, I really cannot live in anywhere cold, so somewhere in sunbelt or near sunbelt would be nice. Also I'd only be interested in large metro areas that are consistently growing, would not be interested in small towns. One more thing is, I would not rather to live in C class neighbors, or any neighbors with high crime. I'd be targeting for more reliable tenant pool.

Any ideas/recommendations into which cities to look?