Cities for best cash flow on duplex rentals - Posted by Chyna

import · February 7, 2007, 8:36am

Posted by Ed on February 07, 2007 at 18:44:05:

David,
With such a nice cash flow and ROI, would like to know what motivates an owner to sell such a property.
Is it lack of equity, appreciation, renter’s headache or were you expecting prices of property to drop further? Just curuious, I guess.
Thanks, Ed

import · February 7, 2007, 8:36am

Posted by Chyna on February 07, 2007 at 09:36:37:

Am looking to purchase some duplexes in cities where real estate prices are low compared to the rents you can get. Looking for cash on cash over 20-25%. Have found a few but would like to pick up more. Appreciation isn’t important but would like to stay away from areas of significant depreciation.

Does anyone have any ideas?

Thanks,
Chyna

import · February 7, 2007, 8:34pm

Re: Cities for best cash flow on duplex rentals - Posted by DCO

Posted by DCO on February 07, 2007 at 21:34:07:

Rochester, New York. My best deal last year was $62,500 purchase price for a duplex yielding $1,250/mo in rent. An average deal is typically $75,000 purchase price for $1,050 to $1,100. You can do MUCH better (on paper) if you buy in the 'hoods encircling downtown.

import · February 7, 2007, 5:14pm

Re: Cities for best cash flow on duplex rentals - Posted by David Krulac

Posted by David Krulac on February 07, 2007 at 18:14:28:

I sold a duplex for $22,000 that rented for $950 a month in Harrisburg, Pa.

import · February 7, 2007, 9:56am

Re: Cities for best cash flow on duplex rentals - Posted by Christopher Smith

Posted by Christopher Smith on February 07, 2007 at 10:56:13:

Get out your crystal ball if you want to know what the future holds, but if you?re looking for areas where the rent-to-price ratio is high then steer towards regions that were left behind during the run-up in property prices over the past few years: lots of markets in Texas as well as areas like Tulsa, Charleston, Montgomery AL, and others.

Note that even some of those undervalued markets are starting to slide; even areas like Dallas are seeing a decline in median prices.

import · February 7, 2007, 9:34pm

Re: Cities for best cash flow on duplex rentals - Posted by David Krulac

Posted by David Krulac on February 07, 2007 at 22:34:35:

it was a repo.