Where can I find cash flow positive properties?

Question

I am looking for a market that will provide an investment property at a price in which the cash flow will be positive after 100% financing, and renting. Where can I find housing prices and rental prices that are good enough to make a cash flow positive investment?

Answer 1

Do some research on short sales and forcosures. Many times the homes need work, so if you are not a handy many yourself, get a team in place. You can buy these homes, have enough to fix them up (with a rehab loan if you don't have the cash) and still have a positive cash flow.

If you want to talk more in depth about all this, feel free to email me. It's not the route to take for everyone, but it works great.

Another avenue would be to look for short sales, but it is much more time intensive on your end....finding them and then negotiaing with the banks before you can even start the process....many times these homes need work too, but not always.

Good luck and happy investing!
It will take some time to get a team in place. At minimum have a realtor who specializes in forclosures, a lender who specializes in forclosures, and a reliable contractor that you can trust. Once all the players are in place, it can become a very seamless process for you.

Identifying the right properties, the right loan, and the right contractor is going to be your key to success.

I know several investors who have this process in place and it works great for them. If you do not already have landlord experience, make sure that this is a job that you are prepared for, or work your numbers first and make sure that you have enough of a spread to hire a property management company.

As long as you do all your numbers in advance, you should have no problem having the positive cash flow that you are working for, if the numbers don't work, then find another property.

Don't get me wrong, it's not as simple as I make it sound in this response, it takes quite awhile to familiarize yourself enough with the market to know the numbers yourself. Don't just trust someone else's numbers initially, know it for yourself, once the trust factor is there with your team....then you can back off a little bit on the control, and that's when it becomes easier.

Answer 2

Positive cash flow on 100% financing? Not impossible, but highly unlikely. Unless you can buy at a significant discount, or much higher rents can be supported once you do buy, your chances of positive cash flow are slim and none, and slim just moved to Texas.

Also, keep in mind, the interest rates for 100% financing on investment properties will be VERY high....which will work against your cash flow as well.

Answer 3

See a realtor. Commercial realtor, maybe.

You're kind of looking for the golden goose, but I suppose there may be some out there.

100% financing? Positive cash flow? Why would anybody sell that if they had it? It's, like, free money!

Answer 4

Yes. All of your expenditures will bring down your total taxable income, but banks now look at that because of the real estate mess, so you could be shooting yourself in the foot. Example: I have a house that generates about $12k per year but I have an apartment building that broke even and I put $12k worth of maintenance into it. Numbers are easily manipulated and the best part of being a business owner is that I can incorporate my personal expenditures into the business and it helps reduce the overall amount of taxable income (example: I put a bathroom in my own personal house and buy all the materials under the business). Our tax system is a joke and VERY easily manipulated. GL

Answer 5

Check out the midwest particularly college towns.

Answer 6

probably not possible. if it was, why wouldn't others jump on it and bid up the price?