Low Cash Flow All Around What to Do?

[Alecia Loveless]

Cash flow in my market has become so abysmal it's dropped to under $100 a door with CoC being lucky to be around 4% on most available multi families. SFH are out of the question right now being above $225,000 now and rents won't support them.

I started looking OOS to other recommended markets but realized prices in my market are still relatively low when compared to other areas, meaning in the $225,000-$325,000 range for 3-4 units but there’s not much inventory.

Then, if you do an analysis after 2-3 years projected cash flows stabilize, equity improves, and the area is growing and we’re seeing larger national businesses move in, so I think the growth trend should continue.

For instance 1 bedroom 1 bath units have gone from $700-$950 in the past 18 months.

My question is if you were me, would you look harder at other OOS markets, or continue to focus on the strong growth in my area but make sure to name my price and stick to it even if it means missing out on some deals that are overpriced.