All Forum Posts by: Zeliang Zheng

Hi Zeliang, this is one that I am aware of that will take place this Wednesday. If you are going, feel free to let me know. I may go.

https://www.meetup.com/bpg-residential-investor-meet-up/even...

Hey there,

Finding markets that still cash flow after a maximum cash-out refinance, especially in a high-interest-rate environment, can be challenging but not impossible. Here are a few strategies and markets that investors commonly consider:

1. Secondary Markets: Look for markets outside of major cities where property prices are more affordable, and rental demand is strong. These markets often have lower competition and can offer higher cash flow potential.
   
2. Midwest and Southern Markets: States like Ohio, Indiana, Tennessee, and Alabama often have lower property prices and can provide better cash flow opportunities, even with higher interest rates.
   
3. Value-Add Properties: Focus on properties that need significant renovations or improvements. By increasing the property's value through renovations, you can potentially increase rental income and improve cash flow.
   
4. Long-Term Rental Demand: Consider markets with strong long-term rental demand, such as college towns, military towns, or areas with growing industries. These markets can provide more stable rental income even with higher interest rates.
   
5. Creative Financing: Explore creative financing options such as seller financing, private money lenders, or partnerships to reduce the amount of cash you need to invest upfront and improve cash flow.

It's also good to conduct thorough market research, analyze rental comps, vacancy rates, and property management costs to ensure that the property will cash flow effectively. Additionally, working with a local real estate agent or property manager who understands the market can provide valuable insights and help you make informed decisions.

Dayton, Oh is a market you should look into. There is an abundant amount of deals beating the 1% rule there. The price to enter is extremely low compared to other markets in the U.S. With the cost of living 9.8% lower than the national average. There are some great competitive advantages when entering from OOS.

Hey Zeliang, you'll be looking in the Midwest for sure. But even parts of the Midwest are getting tougher.

I operate almost exclusively in Detroit and we're still doing a lot of cash flowing deals there even after 75% LTV refinances. You're generally seeing $150-$200/door unless you do a really strong BRRRR and pull out most/all of your capital (then it tends to be less).

One thing to note... be sure you're doing your cash flow calcs correctly. A lot of people don't account for all of their expenses and think something will cash flow that actually doesn't.

@Zeliang Zheng

Here is a good article worth reading: https://www.biggerpockets.com/blog/invest-for-real-estate-ca...

@Zeliang Zheng

Hey Zeliang! I’d be happy to connect and help guide you in the Philadelphia market!

Join a local REI or LL association and network. You might find folks to partner up with. Or determine where and how you want to get involved, raise some capital by selling or using your current properties as assets and get involved that way with or without partners depending on your budget and goals. All the best!