Where To Buy My First Rental Property

[Zachary Young]

Hi all, I am looking into buying my first rental property. As with many others I'm sure, looking for guidance on affordable cities that still provide a solid return / cash flow. Preferably looking for properties under $200k, but up to $300k. It will have to be out of state since I live in a HCOL location so I am open to anywhere in the country, but most of my research has taken me to the midwest (e.g. Cleveland and others) and some spots in the southeast (e.g. Huntsville and others). However, from my research, it's extremely difficult to find any cities where the properties cash flow other than places like Cleveland which has its own set of drawbacks. Cleveland almost seems like the best option because of the affordability and rental demand, but worries me due to the high property taxes and lack of population and economic growth. For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses. I also have no problem doing some sweat work to build equity in the beginning as well. I just want it to work and be a positive experience because I know that will keep me motivating to continue investing and building my portfolio.

What are some cities that might provide cash flow, but remain affordable? Does anyone have better insight into the cities I named? How can I best find undervalued properties in desirable locations?