It would be the markets with the worst appreciation or even depreciating values. That’s why they are the best cash flowing markets. You can still buy houses in small farm towns in MN for $25k. They will cash flow like crazy. Until you have to do a major repair like a roof. Then you might as well level it and buy another one. Of course all your cash flow is gone. So you have to sell just before that point.
The reason other markets don’t cash flow is because the values have doubled, triple, or quadrupled in the last 10 years.
I really suggest you change your goal from making a tiny taxable cash flow (anything less than $1,000/mo per door.) until capex eats it up. To markets where you’ll gain long term tax free wealth.
Imagine having 10 cheap homes that cash flow $2,000/mo or $24k per year. VS one or 2 break even homes that appreciate just 4-5% ($24k/yr each). It starts with doing 10-20% of the work and paying much lower taxes. To eventually also cash flowing as rents increase.
I think $10k/mo is good money, other people live in expensive areas or have higher taxes and need $20k. There’s no chance I would trade my 10 well performing homes for 50 or 100 homes to get the same income before the increased taxes and repairs/vacancies, etc etc.
Time makes everyone in real estate look like a genius. Just get started in a decent appreciating market. Good luck.
