2 Real Estate Markets That PROVE Cash Flow Is Alive in 2024

Episode #1,023

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Cash flow is hard to find in 2024, but these real estate markets have plenty of it. Since so many previously “cash-flowing” markets have seen rising prices, higher expenses, and limited housing inventory, we went back to the drawing board to reevaluate which markets in the United States offer the most cash flow potential. Today, we share these markets and hone in on two specific ones with real-life on-market examples to prove that cash flow is still possible.

But before we get into that, we’re sharing the cash flow formula even beginners can use to quickly calculate whether a rental property will cash flow. Then, we describe what type of cash-on-cash return WE target in today’s market and list some of the most cash-flowing markets of 2024.

[brookeh]

I recently bought a triplex in lackawanna ny for 92.5k. Put 30k into it. Renting it for $3200

[drking]

Insurance tried to get me from 125 to 200, so I switched and now I'm paying 130. Suck it farmers

[RockfordTraining]

I live and invest in northern Illinois. My wife and I own 60+ sf rentals here. It’s good to finally hear bigger pockets talk about more than just the west coast markets 🙏

[ibuyonline]

Guys why don't you use visual material while you talk???? it will be better presentation, show properties, names, maps, peoples, statistics data other graphics etc. we want to see that, no your faces, no ofense, but we are interested in learning....PLEASE SHOW DATA GRAPHICS, PHOTOS, VIDEOS THEN YOU TALK OVER, , ,

[Nippy]

I live in PA and the biggest killer to cash flow is the school tax. In Pittsburgh the school tax is more than the property tax and is a hidden expense to outside investors. I think your numbers missed this expense.

[jryanr]

2 markets in the US that will cash flow. That's saying something. I'm sure there's a few more but in most places it's dead.
The 1% rule is definitely dead.
Too many institutional investors are willing to buy properties and not cash flow for the first several years. I'm not doing that! When competing with the institutional investors and flippers, long term investing is dead in any markets I was looking to invest in (I live in Texas and will not invest out of state for a first deal), unless you're very well connected or get extremely lucky and find a great off market deal with lots of value add opportunity. I'm done trying to park my cash in real estate. My realtor kept trying to convince me to buy properties that, according to him, would cash flow immediately. But when I run the numbers using the bigger pockets calculator, I would lose money for the first 5 years.
Finding a good mentor also seems to be extremely difficult.

[mrtnzmay]

Would you be able to analyze South Texas, Rio Grande Valley? I would like to know your opinion regarding the area.

[sonniatyourservice]

Numbers definitely have to be tighter. In addition to the factors you mention, buyers are more fickle now and inventory is slightly up

[TheHospitalityEdge]

Awesome insights! It’s great to see a focus on cash flow in today’s market. Can’t wait to check out those specific markets and the examples you mentioned. Definitely need to brush up on that cash flow formula too! 💰🏡

[TomTom_]

What is the link to your YouTube where you are talking about your portfolio

[RamiSobhani]

I can’t understand how this channel can keep talking about real estate

[rebeccamatthias]

We are newbies, looking to purchase our first out of state property. We have been running the numbers in Texas and OKC, taking into account 10% property management, 10% maintenance and capital expenses, 8% vacancy, along with an accurate insurance numbers (close to $1, 800 a year in texas for a 3/2!) and property taxes (1.75-2% in texas). Are we missing something? We look at every deal assuming a 6.5% mortgage rate and we can’t find anything that would even be positive cash flow, let alone break even. Is it just not a good time for a newbie to try to break into the market?

[chaoyishih]

Even though I love and personally heavily invested in Pittsburgh, but that example is either in Mt Oliver or Carrick, good luck getting tenant pays you $1700 in that area, just zillow search in 170-180k price range for 4bd 2bath and those are the 2 properties shows up in that 2 neighborhoods

Pittsburgh is rather difficult city for non-local investor to invest because it has so many misleading zip code and neighborhood

It common to see top neighborhood right next to bottom neighborhood without any distinction unless you know the city

Few examples are Point Breeze and Homewood, hill district and Oakland or strip, central Northside and Marshall shadeland, list goes on

Not to mention Barbara Cohen already mentioned it in 2023, let’s keep it down for bit

[techtom]

Are sf markets’ analysis also viable for multifamily?

[TheDCGuitar]

In dc there’s a bunch of property that will easily cash flow but buying them are so hard because even 3.5% of a million is a lot of money

[joelrosa]

How is 5% CoC good return? If it was cap rate that would be one thing but I do not see how that is good for a CoC.

[jryanr]

11:26 a 5 or 6 percent cash on cash return is not better than what you can get anywhere else.
Let's take a look at one of the most basic investments that almost everyone here likely holds: the S&P 500. Over the past year it's increased 33.12 percent! And yes, the stock market has its ups and downs, as does real estate. What about 2022 you say? Well let's zoom out and look at the last 5 years. Even with the 25 percent correction that happened in 2022, it's still up 93.74 percent over the past five years. That's nearly doubling your money in five years!
5 or 6 percent return requiring a lot of work vs 15 percent annualized returns with no work at all... ⚖️🤷🏻‍♂️
My dream was always to be a real estate investor, and still is. But the pandemic ruined that for a lot of us. And let's be real, a 5 to 6 percent return is not better than anything else, and is hard to even achieve right now in real estate. There are better places to park your cash right now.

[stevend]

How does any deal cash flow with using 10% PM fee, 8% maintenance, 8% capex and 8% vacancy lol thats 34%

[MarcusMKE]

Local investor/agent from Milwaukee here and I don't see the sweet spot between Milwaukee and Chicago. That used the be the Foxconn bubble. Milwaukee or Chicago have better housing stock

[irenmolnar]

Hi we lose money here in California mortgage, insurance went up 100%, maintenance, taxes so by the end we loose because of the high