How in the world do you find a property that has + cash flow?

[Trevor Crowell]

Having a ton of trouble finding a SFH or duplex that rents for 1% of the gross price, let alone one that has + cash flow after accounting for taxes and maintenance.

I'm looking in a Midwest, medium COL location. Looking to buy 1-2 properties for ~250k. I've spent a month searching the MLS across multiple sites, no luck. Am I missing something?

[Oren K.]

Trevor,

There are a lot of overpriced listings out there claiming 11 13 and even 15 CAP rates in the Mid-West but when you look at the underwriting (expense assumptions), it is either totally missing key categories or they are way understated to industry norms. The one I love is with respect to property taxes. They assume that taxes will remain the same despite the price being 2x or even 3x the current county valuation. If you ask, you get some BS.

Stick to your own underwriting assumptions and good luck.

Oren