Trouble Finding Cash Flow/Positive ROI!

[Frank Bavaro]

Hey, everyone. 24 year old new grad Physician Assistant looking to build some serious wealth. I'd love to get my foot in the real estate door via a house hack. I've been seeing a bunch of homes in the 550k-750k range in the Staten Island, NY and Bloomfield, NY areas, many of which I had been running numbers on which produce a negative cash flow and/or positive ROI!

Given I am new to RE and still learning, what tips do you have for me to find a winner? Is it as simple as to just keep searching for a deal? Is my price range too high/low? Am I not looking in the right locations? Should I wait for interest rates to come down? 

Lastly, I do still live at home with my parents and plan on doing so for another year or two - I don't have any living expenses at this moment. Do you recommend I take upon a different real estate strategy other than house hacking given my current living situation?

Thank you in advance!!!

[Zachary Ware]

There are indeed various methods to source profitable real estate deals, with off-market undervalued opportunities often being a fruitful approach. In today's market, finding cash flow can be challenging, and it heavily depends on the specific market you are targeting. However, exploring creative financing options has become increasingly popular among investors.

By focusing on off-market deals, you can potentially discover properties that are not actively listed on the market. This may involve networking with local real estate professionals, building relationships with wholesalers or property owners, or utilizing online platforms and databases that cater to off-market properties. These strategies can provide access to undervalued properties with greater potential for generating cash flow.

Additionally, creative financing techniques can be employed to structure deals in a way that improves cash flow. This might include methods like seller financing, lease options, partnerships, or utilizing private lenders who offer more flexible terms. These alternative financing approaches can help overcome the challenges of finding cash-flowing properties in a competitive market.

Alternatively, you could look at more cash-flow-friendly areas. Combining investments in cash-flow-friendly areas with financing options that prioritize the property's profitability, such as DSCR loans, can significantly enhance your potential for building a successful real estate portfolio. By strategically selecting markets with strong rental demand and sustainable rental rates, you can increase the likelihood of achieving positive cash flow. DSCR loans offer an advantage by assessing the property's income-generating potential rather than relying heavily on the borrower's personal finances, enabling investors to leverage the property's cash flow for financing.

Hope this helps and good luck on your journey!