Looking for cash-flow properties

Hello REIers!

I am looking to find some cash-flow poperties in non-declining markets. Do you guys have any advice on where to look and what types of properties to look for?

So far I have been looking at multi-family properties in Tennessee, Missouri, and a couple of other areas in the south. I like that area because it seems to have a little future growth compared to other parts of the midwest and the rust belt area.

Ideally I would like to find something in the west (California, Oregon, Washinton, Idaho, Utah, New Mexico, Colorado) since that is closer to home. But, the south seems to be better for cash flow.

Mobile home parks seem to have some decent cash flow, but I do not have any experience with them. Is that something worth looking in to?

Any other ideas?

I am looking in the $1M and less price range. Any input would be greatly appreciated!

Thanks in advance.

But those areas ARE declining… plus zilch cashflow in those states.

mobile home parks are ok… I just can’t see myself being a trailer park owner.

I’m looking in Texas.

If you look at http://www.ofheo.gov/media/pdf/4q06hpi.pdf you will see that the South is in fact not declining. These numbers come from Fannie Mae.

Mobile home parks are great investments. People just want to stereotype everyone that lives in them. Who cares. Warren Buffett is the largest owner of trailer parks in the US. So you would be in excellent company as a trailer park owner.

What the heck. At first I was sad because Indiana overall saw 2.3%, and most cities saw negative, but I scrolled down and saw my town (Bloomington) was almost 9%. Dang.

Boise, Idaho is rated as the fastest growing city for business in the nation and affordable housing

Some of the national investors I work with are looking at Texas, Utah, New Orleans, Louisiana, Upstate New York, and Boise Idaho.
*Keep in mind some states have higher tax rates when doing your calculations.

Here’s a couple sources to help gauge cities.

cnn.com - lets you compare city stats.

marcusmillichap.com offers a couple nice National SFR and Apartment Index reports. Think it requires a sign-up but it’s free.


Depending on what you’re trying to achieve, it may be easier to get a larger loan than it is to get a small loan. Lenders tend to prefer to write large loans because they make more for the same amount of work. The point I’m making is don’t necessarily limit yourself to $1M and under. If you’re worried about down payments, there are creative ways of minimizing the out of pocket money.

I would like to suggest Mobile Home Parks on the Eastern Shore of Virginia. They all have been under-valued by about $100 per month per lot. Especially with all of the Condos and Subdivisions going up in the area. Courts Systems here are also LandLord Friendly.

If you are worried about not knowing enough about it you can always do a search on Google for “The Property Manager’s Survival Guide” by Me, it has all of the information needed to Manage a Mobile Home Park.

Richard Stephens

What kind of money were you looking to put into a property? You can leverage yourself into some decent cashflows in good markets with the right financing programs or structures!

Cool site guys

Commercial financing questions.

Ok so how would this work?

I have good credit but no experience and absolutely do not have $2.4 million for down payment.
However I have good enough sense to know a good deal when I see one.


On a 160 unit apt buildg in a strong rental area.

Asking price: $12 million

Effective Gross Income $1,688,974
Other Income 34,760
Less: Expenses 860,616
Net Operating Income $828,358
Reserves 0
Net Cash Flow Before Debt Service $828,358
Debt Service 638,662
Net Cash Flow After Debt Service 8.3% $189,696
Principal Reduction 117,322
Total Return 13.5% $307,018

This place was built about 4 years ago and is a prime building for simple condo conversion.
Average condo prices in the area are $95K in a down market!

This looks like a great opportunity to me.

My question is how can I get this financed??? Partnered???


Thank you.