David’s comments on cash flow markets vs growing markets

[Amir Navabpour]

Recently on the podcast I’ve noticed David advocating pretty strongly for growing markets: Austin, California, Denver etc and being more bearish on cash flowing markets: Cleveland, Detroit. Most recently he spoke of how these cash flowing markets have high turnover of investors who end up exiting the game, in favor of the growing markets. I’m curious if anyone has gone through that process? Personally I can’t imagine it, as it’s hard enough finding good cash flow in the 2nd/3rd tier markets. To me any growing market is almost certain to be negative in cash flow and it feels more like you’d be speculating and hoping for appreciation and rent growth. Curious for any who have exited a cash flow market to go to a growing market, what am I missing?