Better Cash Flowing Cities Then Memphis or Columbus?

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Better Cash Flowing Cities Then Memphis or Columbus?

David W.
Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes

Does anyone know of any cities that are statistically favorable i.e. population growth, low unemployment, low property taxes, good cash flow, that might be better or competitive with Columbus or Memphis for 2,3,4plex?

I'd like to avoid places that have high property tax and require additional insurances - tornado etc that will hurt the return. 

I'd love to know what your personal experiences are. I feel like I am a puppy with ADD that is having a hard time focusing on one area. 

I personally live in Los Angeles and nothing here makes sense. Literally nothing.

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Hema Dasarathy
Real Estate Broker · Apex, NC · Member since 2017 · 22 posts · 18 votes
7y

@David W. You should definitely consider Raleigh and surrounding areas including Durham of NC. Extremely good with the floating population, jobs, rapidly growing suburbs, taxes between 1% in Wake county to 1.39% in Durham ( some areas of Durham at 1.6%). With RTP, Duke, UNC and NC State, and IT hub, Pharma hub, this place is not going to slow down. 

I hold properties in double digits here and growing. Also have many investor clients from CA who have rental properties here. You should definitely consider this place. 

Hope this helps.

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    7y

    Little Rock Arkansas. Reach out to Alex craig of Memphis turnkey. You can find him here on bp 

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    2Reply
  • Account Closed
    Los Angeles, CA · Member since 2018 · 95 posts · 46 votes
    7y

    @David Waddleton

    David, Columbus and Memphis are definitely not low taxes cities. For apartment buildings you will pay about 2% in Columbus and 3% in Memphis which for me is a non starter

    2Reply
  • Britt Clark
    Member since 2018 · 38 posts · 17 votes
    7y

    Which city are you asking about? Columbus, OH or Columbus, GA?

    0Reply
  • Britt Clark
    Member since 2018 · 38 posts · 17 votes
    7y

    Which city are you asking about? Columbus, OH or Columbus, GA?

    0Reply
  • James M.
    Rental Property Investor · Seal Beach, CA · Member since 2016 · 115 posts · 85 votes
    7y
    David Waddleton There are properties in LA which make sense but as just about every podcast I listen to states, they aren’t going to jump out at you. You’ve got to make the deal work whether it’s negotiating the price of the home, rehabbing, raising rents, etc. I’m not sure your investment strategy, but personally I’d rather the appreciation and equity I can build in CA overtime rather than a 12% ROI like the Midwest.
    2Reply
  • Hema Dasarathy
    Real Estate Broker · Apex, NC · Member since 2017 · 22 posts · 18 votes
    7y

    @David W. You should definitely consider Raleigh and surrounding areas including Durham of NC. Extremely good with the floating population, jobs, rapidly growing suburbs, taxes between 1% in Wake county to 1.39% in Durham ( some areas of Durham at 1.6%). With RTP, Duke, UNC and NC State, and IT hub, Pharma hub, this place is not going to slow down. 

    I hold properties in double digits here and growing. Also have many investor clients from CA who have rental properties here. You should definitely consider this place. 

    Hope this helps.

    5Reply
  • David W.
    OP
    Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
    7y
    Originally posted by @Britt Clark:

    Which city are you asking about? Columbus, OH or Columbus, GA?

     Ohio =)

    1Reply
  • David W.
    OP
    Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
    7y
    Originally posted by @James M.:

    David Waddleton

    There are properties in LA which make sense but as just about every podcast I listen to states, they aren't going to jump out at you. You've got to make the deal work whether it's negotiating the price of the home, rehabbing, raising rents, etc. I'm not sure your investment strategy, but personally I'd rather the appreciation and equity I can build in CA overtime rather than a 12% ROI like the Midwest.

    Thanks James. I just maybe don't have the experience and know how to see the diamonds in the rough in LA. I do see for example a major rehab in my area but I can't get financing on it because it is in bad bad shape. Then everyone is putting all cash offers on it for $600k. 

    Do you have a recommended strategy of how to find these or what to look for? Budget with a partner is $1.2mill and going solo is $600k. I keep reverting back to my area in North Hollywood, Lake Balboa and 4plex is my goal 

     

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  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    7y

    At a certain point @David W. you're going to have to pick a market and go head first into it. I wouldn't get too caught up in trying to find that "BETTER cash flowing market." Because you can make money in Columbus, Memphis, and 50 other markets in the US. Remember, the actual property produces cash flow, not the market.

    Yes, do your market analysis, but a majority of your time should be spent building teams and relationships in the market, learning how to analyze property, making offers, and closing on deals. A LOT of people get stuck in just trying to pick a market...and never make it past that step. Don't get caught up there :)

    GOOD LUCK!

    -Tyler

    4Reply
  • David W.
    OP
    Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
    7y

    @tyler jahnke thanks for the reminder. Yes you are right. I am caught up with the hunt of cities. I live in Los Angeles and just wish I could get something here with my $600 price point that I could rent but that is not possible. I will stick with Columbus, Oh and Memphis, TN =)

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    7y

    @David Waddleton I would go spend some time in those cities first. I would personally never buy in either. I’d look for markets with decent cash flow and some upside too.

    Check out Louisville, Lexington, Cincinnati and San Antonio.

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  • David W.
    OP
    Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
    7y
    Originally posted by @Jordan Moorhead:

    @David Waddleton I would go spend some time in those cities first. I would personally never buy in either. I’d look for markets with decent cash flow and some upside too.

    Check out Louisville, Lexington, Cincinnati and San Antonio.

     Why would you never buy in either?

    0Reply
  • Marisa R.
    Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y
    Originally posted by @David W.:

    Does anyone know of any cities that are statistically favorable i.e. population growth, low unemployment, low property taxes, good cash flow, that might be better or competitive with Columbus or Memphis for 2,3,4plex?

    I'd like to avoid places that have high property tax and require additional insurances - tornado etc that will hurt the return. 

    I'd love to know what your personal experiences are. I feel like I am a puppy with ADD that is having a hard time focusing on one area. 

    I personally live in Los Angeles and nothing here makes sense. Literally nothing.

    I am playing in Detroit at the moment, you could achieve anywhere from 12-15% net return.

    However, caveat on this comment.....

    You need

    Good property management in place

    Right product in the right location

    If you can do this you will be probably in the best cash flow market in US. In saying this I also believe Detroit is on the cusp on change = appreciation.

    4Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    7y

    @David Waddleton because I know both cities well, I’ve spent lots of time there after growing up in Louisville. I look for cities with more upside and not just cheap properties.

    [email protected]512-888-9122
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  • Curtis Harvey
    Investor · Top of the World · Member since 2016 · 165 posts · 40 votes
    7y

    @Hema Dasarathy Greetings, I am in CA and I am looking for 2-4 unit properties similar to what you are suggesting. If you do not mind could you email me or DM me you most recent list of properties?

    Thanks in advance!

    Curtis

    0Reply
  • Hema Dasarathy
    Real Estate Broker · Apex, NC · Member since 2017 · 22 posts · 18 votes
    7y

    @Curtis Harvey Hi! Thanks for getting in touch! I sure will. Please check your DM for further information.

    1Reply
  • Curtis Harvey
    Investor · Top of the World · Member since 2016 · 165 posts · 40 votes
    7y

    @David Waddleton. There are plenty of fix and flips all over socal within your price range. You can even pick up some burrr properties at the price. What strategy are you using?

    The two areas you talked about will allow you to get great cash flow and keep you coast per unit down, so that could also be an option as well.

    Curtis

    0Reply
  • David W.
    OP
    Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
    7y
    Originally posted by @Curtis Harvey:

    @David Waddleton. There are plenty of fix and flips all over socal within your price range. You can even pick up some burrr properties at the price. What strategy are you using?

    The two areas you talked about will allow you to get great cash flow and keep you coast per unit down, so that could also be an option as well.

    Curtis

    I only have 1 investment property so  far that was move in ready and I am renting out the bedrooms to individual roommates. That is the only model I am familiar with so far but my final goal is apartments. I figure the logical next step would be a 4 plex that would could need some love to get a "deal" and then fix it and rent it out. 

    I am only familiar with the Valley - Van Nuys, Sherman Oaks, Reseda, areas and ideally would want to find something close by I could drive to and personally work on. Even areas such as Inglewood are foreign to me meaning I am not sure what the demand is for renting etc. 

    What areas do you suggest that would be in my price point, in rental demand and also history of fair appreciation? Thank you!

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