In the DC Metro area and nothing on MLS cash flows

[John Joseph]

I'm on the Maryland side of the DC metro area and am finding in my analysis that not even the cheapest listings on the MLS are cash flowing. The properties I am targeting are all under $200k (which is rare in this area even for distressed properties). The inability to cashflow seems to me to be the result of two things 1) Low rent prices relative to the purchase price and 2) current interest rates. Is anyone else seeing this in their markets? Even in nicer markets like Annapolis the average rent is only $2000/month, which creates a really low purchase price ceiling. In this market if I am looking to rent a single-family home the old-fashioned way is my only hope to cashflow finding a super distressed property off-market?

[Russell Brazil]

Buy, hold, wait for rents to rise. I make well over $150,000 a year in cash flow from DC rental properties. Nearly every single one was barely break even when I initially purchased them though