Looking for rental properties with appreciation and non-negative cash flow

[Raju Penmatcha]

Hi,

I'm looking for cities/states where I could invest in townhouse/SFH type rentals for strong appreciation while ensuring that I don't go cash flow negative. At present interest rates, are there cities where we could be cash flow non-negative (for a standard 20% down payment)?

As I live in New Jersey, somewhere in the North East is easier to manage, although I don't mind out of state properties if their growth/appreciation prospects look good. Thanks for your inputs.

[Kerry Baird]

While not a blanket statement, my experience is that my cash flow markets where I have my long term holds, are not going to appreciate a whole lot.  And my appreciation markets, where I run STRs, are slim on cash flow…or there is a lot of “dead” equity in order for the property to cash flow.  

That said, I’m going to put the extra money in a deal in the appreciation market, whether it is renovating a below-market-priced house so that I can rent.  Or I put a larger down payment so that it will cash flow.  Or I get an interest only mortgage.  Or short term rent, so the rents are higher.