$30k to play with, looking for cashflow. Where do you go?

[Alex Johnson]

Subject pretty much covers it. I've picked up a few rentals in Denver in the past 2 years but I bought them as primaries, moved in, then moved onto the next one. Now I'm in a primary that I'm not going to leave for a few years, so I'm looking at picking up a rental the old fashioned way. But I'm priced out of the Denver market when it comes to 25% down rentals. So let's say I have $30k to play with, any markets you would suggest with good renter pool, good demographics, good job market, and decent cash flow? Been looking at parts of Michigan, Indy, Columbus and KC

[Jared Garfield]

@Alex Johnson check out the South!  Alabama has some great returns, particularly Huntsville and Montgomery.  Fully renovated properties with tenants in place typically run $85,000-$100,000 (in these markets) for rents of $900-$1,200 so that would work with the down payment amounts you have and allow you to save some cash reserves for maintenance/vacancy/rainy days.

• Mazda just announced that they are going to build a 3.6 billion dollar plant not far from Huntsville.  
• The FBI Langley offices are in the process of relocating 4,000-5,000 employees to a new location on Redstone Aresnal (which already employs 35,000).  
• Huntsville is #2 for P.h.d's per capita due to the Cummings Research Park.  
• Remmington Arms and Polaris also just opened plants, and Boeing already had a huge presence there as well as Toyota.  
• Huntsville is expected to grow from 500,000 in the MSA to more than 1,200,000 in the next 20 years, and it's only 1.5 hours South of Nashville.  
• Alabama is #49 for property taxes, so that's less burden on your cash flow.
• Crime is very low compared to most cities of the same size and educational levels are great!

I would also look at Indianapolis, Tulsa, OK City.  We've done 250+ properties in AL and more in Atlanta and a few in Kansas CIty, so glad to answer questions on those markets.  Inbox me or send me a friend invite and I'll share some podcasts that cover a lot about market selection.