Advice about best cashflow market for my situation

Advice about best cashflow market for my situation

Investor · NY · Member since 2017 · 59 posts · 21 votes

Hey everyone!

So I am still fairly new to REI but have been doing a lot of research on the blog and forums. I am mostly interested in maximizing cash flow, even though some appreciation would be nice as well. I am mostly focused on small single family homes, and maybe small multi units. My ideal investment for each property would be in the ~20-25k range, so putting it around ~100k a property. I would ideally be looking for A, maybe B grade properties if A grade is not possible.

I started narrowing my research with https://www.biggerpockets.com/renewsblog/2016-inve... and started with the top 10 markets for cash flow. Then I did further research, especially focusing on growth in the tech sector, since I work in that sector and do believe that it is the future, and will provide stability in the region. 

With that, I narrowed my focus to 4 cities, Kansas City, Jacksonville, Tampa, and Detroit. 

I am just wondering if there are people that are in those markets now, and have any advice about which one might be best for my situation. I think initially I would probably start using a more turn key service, but then move in to having my own team as I get more experience. I will be remote since I live in California.

Thank you for reading and your advice!

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Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
9y

Hey @Tony Xu

"I am mostly interested in maximizing cash flow...putting it around ~100k a property. I would ideally be looking for A, maybe B grade properties if A grade is not possible."

To have all of those things is not impossible, but would be very difficult to find. I would suggest picking two of those three points.

To give you some perspective - your statement above is a bit like saying

"I'd like to buy a new car, one that has the best gas mileage. I'd also like a luxury brand, like BMW or Mercedes, and my budget is $9,000."

Here's a broad overview of what you can buy with $100K in the cities you listed:

Kansas City - B neighborhood

Jacksonville - C neighborhood

Tampa - D neighborhood

Detroit - A/B neighborhood

“I think initially I would probably start using a more turn key service, but then move in to having my own team as I get more experience. I will be remote since I live in California.”

If you want to be passive in your investments turn key can be great. But if you can dedicate the time to your real estate endeavors doing things in house will be much more beneficial (and less expensive).

I know all four of these cities well.Feel free to send me a PM if you have any questions or feel free to just reach out and share what you decide!  Good luck!

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  • Tulsa, OK · Member since 2016 · 119 posts · 23 votes
    9y
    In my opinion, Detroit is your best bet! Of course, we have our issues, but there is beauty in our city. Our homes are cheap, yet have sound structure. I currently live in Oklahoma and my family wants to buy my home. My wife and I are leaning towards NO! We see what is coming!
  • Rental Property Investor · Mansfield, OH · Member since 2017 · 151 posts · 117 votes
    9y

    @Eric Delcol - Both Indianapolis and Charlotte

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    9y

    That all sounds good! If you can get the right teams going for you, you'll be golden! Just be sure they are all people who are very familiar with investing and understand cash flow and what it takes to sustain the projected cash flow. As long as everyone involved knows those things, you can get a great property! 

    Let me know what market you decide on! I'm excited for you :)

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