In markets where affordability and cash flow are tough, focusing on stable, long-term rental markets with strong resident demand can make all the difference.It’s completely understandable to feel cautious after missing opportunities in the past, but real estate has always been about timing and strategy.

Zillow Senior Economist Orphe Divounguy nailed it when he said mortgage rates have a massive impact on affordability.

They know they can’t afford a trade war.

Westchester, although one of the hottest markets, has a ton of upside with opportunities for both cash-flow and equity. 2-4 family properties in Westchester are the 2nd most affordable in the NYC Metropolitan area (next to Suffolk County) making it easier to find cashflow opportunities when compared to the boroughs and other suburbs like Nassau.A client of ours in Westchester recently purchased a < $800K 2-family with a detached 3-car garage which brings in additional rental income - from a local business owner with commercial vehicles.

I think asset prices will continue to grow, areas where millennials can buy affordable real estate will be where I'm setting my sights on.  

If you are looking for more appreciation and can afford to cover a few hundred dollars a month of negative cash flow then I'd recommend looking at Gilbert.

That has driven a lot of DFW investors to our market but it's still relatively affordable for investors to get started here. 

For southern states, you might want to look at smaller markets in Alabama, Mississippi, or parts of Tennessee and Arkansas where properties are still affordable and cash flow potential exists.

Many Texas cities are incentivizing developers to build affordable housing units, but challenges remain around keeping these homes accessible long-term.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.