2017 Cash Flow Markets

[James Hong]

Just curious to see which markets are attractive for cash flow properties in 2017? I heard that Memphis, Indianapolis, Austin/Dallas, etc.. are great cities for cash flow. Any thoughts? Also, what timing do you think is best for a first time investment property buyer? I am new to real estate investing and would love to hear everyone's input. Thanks for your time! 

[Jason L.]

@James Hong 

I'm a total beginner in this but maybe I can help others from my research.

As you can see, there are as many opinions about where to invest as there are people.

All of these people may have good intentions, but they may not.  It's hard to determine online.

We are in the Bay so being local is tough without a larger amount of capital, but reach out to people locally and see if you can find someone you feel is honest.  It may take phone calls and in person meetings.

If you can't stay local, maybe check out less desirable areas in California.

If you have to go out of state, just do more homework.  Meet with people, get references, meet them again.  Start small and grow.  Have a lawyer look over everything.

Do your own market analysis.

Here's a method to do the market analysis from another post from Eric Fernwood in this post...

https://www.biggerpockets.com/forums/52/topics/235...

I can't find another, better process for assessing a market.  There are probably other variables I would add (5 year GDP, crime stats, sports teams, number of Targets/Walmarts, number of Whole Foods/Trader Joe's, Fortune 1000 Companies, major universities, last 5 years of population growth, price/income, price/rent) and also add a weighting system, but I think it's a good start.

I'm making my own spreadsheet for this purpose.

Search market analysis here on BP for other helpful forums.