Market that Can Match these Figures

[Luis Fernandez]

I'm looking to invest $100,000 in cash toward rental property for a revenue of $3,000 to $4,000 per month. I'm not interested in appreciation or quality neighborhoods. My primary interest is cash flow. With that being said, I understand that with these figures, chance are it will be in the ghetto. I've searched Las Vegas and missed the boat about 4 years too late. I'm currently jumping on a flight to St. Louis Missouri where I'm seeing multifamily units within that price range, however, I saw sweeter deals just a year ago. I'm getting the feeling that a lot of cream of the crop has been bought up. If I don't make a purchase in STL, my next stop is Atlanta, Georgia or Ohio. I'm looking for some insight if any of you have or are currently investing in one or more of these locations and what recommendations you may have. Do you know of another state or major city that's producing these figures? This will be my first rodeo in rental property investment. I appreciate the insight.

[Cody L.]

If your $100k is going to buy a $400k property you should be able to get ~$6k/month of rent (more if trash area, less if not. 100x monthly rent is my MAX price I'll pay and that's if I like the area)

With that you are NOT going to cash flow 3-4k/month. That's 36-48k/year or a 36-48% return on cash.

I've had deals like that but they're outside of the scope of this reply and not going to happen unless you're super plugged into a submarket and find the right op that wouldn't be jumped on by the masses.

(Best deal I ever did was a vacant commercial property. Paid $500k. Appriaser for $750k. Got the seller to raise price to $700k and give a credit at close. I closed with less than $0 down (got money back). Found a NNN renter to take it for $12k/month while my only bill was a $5k mortgage note. So $7k/month cash flow and cash at close. Wish they were all like that)