10 “High Cash Flow” Real Estate Markets of 2022

Is your real estate market a cash flow market or an appreciation market? It’s safe to say that almost every US city saw extreme appreciation over the past two years. But that’s not always such a good thing. Investors are feeling pinched, trying to figure out how they’re going to pay their bills and keep a portion of the profit. States that were once seeing high cash flow, now are barely breaking even. What cities have any cash flow left, and which are worth investing in?

We've got our data detective, Dave Meyer, on the case to find which markets make the most sense for cash-flow-first real estate investors. To no surprise, most of these real estate markets are in the Midwest or south of the United States—historically high cash flow markets. But, interestingly enough, many of these markets have also seen serious appreciation, meaning that there is the potential to get the best of both worlds in just one deal.

Looking for even more cash flow markets? Dave’s team has put together a top 100 list of the most cash-flowing markets in the United States, stretching from coast to coast. Download the list for free by clicking on the link below!

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Listen to The “On The Market” Podcast Wherever You Listen to Podcasts:
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6 Cash Flow Unicorn Cities:
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The Investor’s Dilemma? Finding Cash Flow in the United States:
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Evaluating Cash Flow vs. Equity in This Wild Market:
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00:00 Timestamp: Can You Still Find Cash Flow?
01:51 Timestamp: It's True...Cash Flow is Falling
04:49 Timestamp: The Top 10 Cash Flow Markets
05:04 Timestamp: 10. Milwaukee, WI
07:27 Timestamp: 9. Philadelphia, PA
07:45 Timestamp: 8. Indianapolis, IN
08:23 Timestamp: 7. Memphis, TN
08:52 Timestamp: 6. Akron, OH
09:14 Timestamp: 5. Macon, GA
09:23 Timestamp: 4: Orland Park, IL
09:48 Timestamp: 3. Cleveland, OH
10:25 Timestamp: 2. Shreveport, LA
11:32 Timestamp: 1. Detroit, MI
12:25 Timestamp: Get the Top 100 Cash Flow List!

[steveelling]

Re Akron and Cleveland: Ohio real estate taxes are absolutely brutal.

A $150K house in Cleveland pays about $3, 600 annually in taxes, which is going to take a massive bite out of your $1, 400 monthly tenant payment in an affordable rental area like Cleveland Heights. Add another $70 per month for insurance, $130 for a property manager (based on a standard 10% management fee) and the monthly mortgage payment ($700 based on 20% down and 6% interest on a $150K investment property), and the cash flow is reduced to the point of, "why bother?"

Clearing $200-250 per month is not going to cover many big-ticket repairs. Roofing issues, snow removal, tree trimming, and any minor repairs for the HVAC, refrigerator, garage-door opener, garbage disposal, dishwasher and the rest means you very reasonably could lose money for the year. Since property appreciation is virtually nil in this area, what's the point? Ten years later, the tenants will have paid down your mortgage balance some, but the price of the house will have increased in single digits.

Tread carefully.

[salvadorpuente]

Dave should mention that the year on year price appreciation percentages should be considered an anomaly just like the RTP ratios in 2010-2012. Covid had a huge positive impact on these markets and it's still too early to tell what the fallout might be.

[eddieparker]

I began investing in Real estates and I’ve made enough profits in a year to buy rental units and parking lots, and I’m still investing in REITs and my real estate properties which bring in approximately $600k annually

[almostastar]

In your data for best housing markets it would also be excellent to include vacancy rates and average turnover, as well as a landlord friendly scale. I know too many people who’ve been burned in places like Michigan and Pennsylvania over the last two years with bad tenants who could not be evicted because of state law!

[healthyaisletoasia]

Would you be so kind as to create a list for Canada?

[firerealtyteam-reimetrodet]

Great video.
We LOVE Metro Detroit. Best price/rent ratio in the country. For note, we find the best balance is in slightly better location coming in more around the 1.2-1.4% rule rather than chasing the 2% rule in D markets.

Those 2-3% deals in rough areas is what gives Detroit a bad reputation. But buy the 1.3% rule deal in a B market and enjoy a nice location with solid cash flow and growth for a long time.

[januszchudzynski]

My favorite videos from BiggerPockets. Short and straight to the point

[stefanimokris]

I LOVED this video! I am part of a small group of investors who are eager to work together. I like the price point on those areas and I think it's worth look into it. Where my husband and I buy a SFH is near 400K, a two family close to 800K. Next group monthly meet up I will propose to talk about how can we buy together a property in one of those areas and learn how to work as a team. Thank you for delivering value content as usual!

[mordykatsevman]

Another amazing video! Thank you so much. Could we have a similar video about top ten flipping markets?

[wilsonrealty]

Disclaimer: The term “passive” for rental property is used vary loosely.

[phil]

Macon Georgia is similar to Shreveport in the fact that appreciation is extremely low. If you buy a house today, it will be worth the same thing 10 years from now.

[marshallgerston]

Great video and right to the point. I for one appreciate the fact that you're not wearing a "wife beater" or tank top, with your hat backwards, and cheap mirrored sunglasses while annoyingly walking down a street filming yourself.
But I do have a question that's bugged me for a while. I'll use fake round numbers. If you buy a house for $100, 000 and you rent it for $1000/month - boom 1% rule. So the house increases over time to $200, 000 and you rent it for $1500/month. Is that now a 1.5% rule house or .75%?
Thanks again for the videos!

[wyattsage]

No wonder Jaspreet is doing so well with real estate. Location, Location, Location

[lawrencebriggs]

I love investing for Cash Flow. After residing in Austin, TX for a few years. I moved about 45 minutes away from the area to purchase rental properties because of a cash flow market.

[patrickmoore]

I am pretty sure these lists completely leave out tax implications. Milwaukee and Orland park have bad taxes and there is no way the pencil out that well if that is considered.

[erickpezoa]

Did you guys evaluate the market in Harrisburg, PA?

[KevinBriggins]

Really surprised Birmingham isn't top 10. You can definitely still get the 1% rule there.

[johnpdd]

How did Gary Indiana not make this list? It should have been in the top 3.

[workplan]

Could someone explain what RTP is and why its so important when doing market evaluations ?

[ankitvora]

Have you accounted for the real estate taxes in your calculation ? E.g. Detroit has one of the highest property tax rates in the country. With a millage of around 88 for an investment home, a property of $200, 000 would incur a tax bill of about ~$17k. Even if the tax assessed value is 50% of the actual home value, the bill will still be around $8.5k which is about $700/month. That would affect the numbers tremendously.