Trying to figure out REI in the current economy

[Dan Hughes]

Hi All. New member here. Considering REI but trying to educate myself first. Biggest concern is how to gain cash flow in the current economy with high house prices, increasing interest rates and flat rental rates. I can't figure out how it is possible to get income out of a rental property if it seems like the PITI alone is going to be more than the possible rental rates. Looking for modern educational resources that are up to date on how to make REI work in this economy. Most traditional resources, like books, are starting to seem obsolete considering they seem to use a model of low house prices, low interest rates and being able to keep raising rental rates.

[Samuel Diouf]

There's still cash-flow opportunities here in Ohio. Look into Cincinnati or Cleveland. Though I don't think cash-flow should be your only factor. Most millionaires in real estate became so through appreciation. If you buy a house worth $100k with $20,000 down and in 5 years, it's worth $150k, that's a 250% return on your cash. I would look into markets where there is projected economy growth.