Originally posted by @Michael Kay:
Like folks have said here, Ohio is great. The whole mid-west is a great place to start for cash flowing properties. Also consider areas of the South.
Cities like Indianapolis, St Louis, Cincinnati, Kansas City, Cleveland, Atlanta, Huntsville, Birmingham, etc. You mentioned wanting to buy a fourplex. Some cities have a dearth of residential MFH, other are swimming in it. Kansas City, for example, doesn't seem to have a large supply of what you're looking for. Cleveland seems to be swimming in duplexes, however.
The best thing to do is to start looking at individual properties in markets, really quickly run some numbers on that property. Eventually you'll notice some trends. Take a look at numbers you have to calculate profitability. Do you notice certain ratios seem to hold up, or that taxes in one area are high compared to another?
Hi Michael, thanks for sharing these bits of wisdom. Very helpful. Could you point me, a newcomer, to a formula, or some variables that you calculate profitability? When you cited the reference for taxes, I'm not sure how to calculate that. For example, is it something you pay per year, and divvy out the cost each month to ensure you can afford it? Also, would the tax rate be on the price you sold it for, or its current price - say, after a rehab?
