Mashvisor’s bad advice

[Max Briggs]

I am not sure how I ended up on the Mashvisor distribution list, but it happened, and they recently sent me the following article:

https://www.mashvisor.com/blog/price-to-rent-ratio...

In this article they argue that the best place to buy cash flowing rental properties is in very high price to rent ratio cities like San Francisco.  Their argument is that because the price to rent ratio is high, there is a large incentive to rent so rental demand will be high and will cash flow (FacePalm).  I cannot believe that they are pedaling that advice.  In high price to rent ratio markets purchasing demand is outpacing rental demand, so even though the dollar value of the rent may be quite high, the prices are so high that it is difficult to make them cash flow at all, let alone get them to beat deals in low ratio markets.  I offered a potential compromise in the comments section that maybe they are projecting future rent increases or making appreciation plays, but they reiterated their opinion that "conventional wisdom" points to owning rentals in the highest price to rent ratio markets available for cash flow investors.  I hope this advice was from a rogue blogger and not someone that actually advises clients.