What areas are you buying in for cash flow?

[Daniel Ortega]

Hello,

Curious to see what areas people are buying in right now for cash flow properties. Currently my team has been looking in Maine but might have to expand that search because we haven't found the right one and so we were wondering what areas have your interests and why? Some other places we were going to look into were Alabama, maybe Ohio, and New Hampshire but property tax is really high in Ohio and new Hampshire so we are leaning more towards Alabama. Anyways, would be happy to hear your thoughts on what areas might be good to look into or really any advice on how to spot the right investment areas. Thanks!

[Eileen McCue]

I invest in mid-coast Maine and have found cash flowing deals.  Contractors can be pricey here and taxes are higher, but rents are good, demand is very high, so vacancy is a non-issue and we get our pick of great tenants. Also, appreciation, while not a guarantee of course, is likely to continue to be strong here. 

The market is very tight so we are not even looking at anything that gets listed unless it has been sitting for a while and has lots of deferred maintenance and opportunity for forced appreciation.  

We have found that purchasing properties where rents are below market and then doing rent repair, while it doesn't look like a cash flowing deal at purchase, will typically have good cashflow within a year or two.  We are long-term investors, so purchasing a property and taking a year or two to stabilize has worked well for us.