Lower six figures saved 800 credit score and need cashflow

[Alex K.]

Hi everyone, I'm in Los Angeles and I have come to realize after analyzing many deals. Los Angeles is not a cashflow market ... Duh ! But, I'm looking to replace my income and I have a goal of building enough cashflow to replace my income . Starting with a single family purchase . I know this will take time, mistakes, and learning. I'm okay with all those things.

However, I'm having trouble identifying a market. How have you guys identified your market and built a strong criteria when you got started ?

I heard nashville and Atlanta is good for this and other markets. What metrics should I be looking out for.

So far I have thought of the following.

1) good mix jobs in the area.

2) income levels

3) price of home vs rent prices

4) landlord friendly states

5) rate of tax increases y/o/y

I have low six figures saved in la that's nothing 😅. But I also have great credit.

Any thoughts would help.

[Lee Ripma]

Ah the market selection question. You have identified some other things you are looking for, landlord friendly and good price to rent ratios. Good start. My theory is that when most people say "I need a market" what they are actually saying is I want a B class area (30k income plus) with a lower price point (100-250k median home value) that is growing in population/jobs/median income so rents over time will increase and I'll on the long haul I'll have market appreciation (in addition to being able to force market appreciation).