Dallas a good market for cash flow?

[Benjamin Kanevsky]

I keep reading all these great thing about Dallas and other major cities in texas being great for investing in buy and hold properties. But whenever I run the numbers it seems like its pretty much at a Rent to value of 1% which doesn't seem like there would be much cash flow. Example a 100k house in Mesquite tx would rent for $1000 a month. Other areas of the country (ie Milwaukee) seem to be getting closer to 2-3% rent to value. Am I not running the numbers correctly or not looking in the right neighborhoods to invest?

[Andy Collins]

You mentioned a $100k house in Mesquite renting for $1k,,I own rentals in Mesquite, and I don't buy at 100% of market,,I look for deals.

Most of my houses in the area I am into for about $80-85k, worth about $100k and rent for $1125-$1200,,,,i these aren't 100 year old houses you have in many areas, and my $80-85k includes a total rehab

The cash flow is good, normally about $350-400 per month/house, but the appreciation is great.

If you want to do 2-3% deals, go into bad areas (war zones), you can find those deals,,in nicer areas you won't find them (at least in DFW)