Cash flow

I am a new investor and am looking to buy properties that will cash flow. However, with real estate prices ballooning everywhere, I am finding it almost impossible to find properties that will give a positive cash flow after debt service and other expenses are paid. Does anybody know where (if) properties like that can be found? Please help me out. Thanks.


Howdy Investudent:

I am investing in Killeen, Texas. The prices are still low and rents are rising and so will prices. I am buying duplexes for around $20,000 that rent for $500 to $550 per month. I also see higher quality property in the $160,000 that rents for $2700. I moved from Austin to Killeen because even the values here are too high to cash flow.


The statement of RE balooning everywhere is not clear, as i strongly disagree, there are still great areas to buy (and gt positive cash flow). I live in FL therefore invest heavily in FL (so i may be a little biased so take that into consideration), and with the rate of new residents moving here paticullarly SWFLA (Lee County, also FL now becoming the 3rd most populates state overtaking NY), there are multitudes of oppurtunity. Find areas with strong growth, paticularly service type areas as you will generally find great rentals from this line of folks.
So that i am not too terribly biased ;), i have heard and seen strong numbers supporting Utah (Salt Lake area), Nevada, Maryland and South Carolina…so venture out and do some research, you may be pleasently suprised to see that the RE balloon is really just a bunch of hot air!

Ted and Cbrechbill, thanks for your feedback.

Cbrechbill: Florida was the first place I looked at for investment including the SW part of it, but what I found was prices had appreciated more than 20% per year in the last few years and high vacancy rates. I am obviously missing something. Are there any cities in particular you can point me towards to get started? Places with good rentals you told of? Thanks.


Yes, I know of 4 areas. Most are 95% LTV a few are 100% but the cash flow is less. Most are New builds with built in appreciation.

I have done 4 like this in the last 6 months with a positive cash flow with None of my money. :wink:

Have an Awesome day.