Are cash-flowing markets getting too expensive?

[Jamey Mako]

I've been looking for rentals through turnkey providers, but found very few that met the 1% rule. When using the typical 10% for vacancy, management, maintenance, I am only seeing 5-7% cash on cash return. A lot of these turnkey companies sell properties in similar cities that are considered great cash-flow markets. So I was wondering are all the good cash-flow markets just getting more expensive or is anyone still finding deals with better returns?

[Kathy Fettke]

@Abdul Azeez its definitely getting harder but at Real Wealth Network we are still finding these kinds of returns on turnkey property in Cleveland, Detroit, KC and even parts of Florida. I wouldn't worry as much about the 1% rule as the overall return. For example, in Texas we can sometimes get 1% in rents, but taxes eat up the cash flow. Whereas you might get less than 1% in Florida but taxes are lower and appreciation is still strong. Maybe after the stock market crashes, we'll find more deals. :-)