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3 Steps to Finding Hottest Cash Flow Markets for Buying or Flipping
High cash flow markets are typically weak or flat, with little or no likelihood for appreciation. (They generate higher cash flow BECAUSE they’ve not experienced a lot of appreciation over the years.)
When a previously weak or dead real estate market starts a new up-cycle, powerful opportunities exist to capture BOTH higher than average operating cash flow AND strong property appreciation.
National members, begin your search using the Cash Flow Finder (“CFF”) tool at the STATE level.
- Select STATE level
- Click the column title “Hot Market + Cash Flow Score” to rank all states by this score.
- Choose any of the top states to find the best micro markets IN that state
- In this example, we’re going to use Ohio
If you prefer a more ‘visual’ approach, you can also use the Indicator Maps to identify the strongest STATES for BOTH Cash Flow AND Appreciation.
- Select the Tools box
- Select ‘Hot Market + Cash Flow’ from the drop-down menu
- Using the color-coded map, identify all top states you want to look ‘inside’
Note that the top 5 states in the CFF Tool above (GA, IN, SC, NE. OH) are also the ‘hottest’ states (red and orange colors) in the Master Score Map below.
INSIDER TIP! – When you see multiple adjacent states with strong colors (for ex, GA, SC, AL, TN, NC in the map above), that is a confirmation signal. You can have greater confidence when multiple nearby markets show similar scores. The same is true when you see multiple adjacent markets with low, weak scores/colors; it is confirming a broader trend.
Now that you’ve identified one or more high appreciation, high cash flow STATES, you start drilling down INSIDE each state…
- Select METRO level in the CFF Tool
- Limit results to your chosen State
- Choose any of the top Metro’s
- In this example, we’ll look inside Dayton, OH
Now that you’ve chosen the best Metro area(s) for high appreciation and high cash flow, let’s look inside that Metro area for the best COUNTY(s)…
- Select COUNTY level in the CFF Tool
- Limit results to your chosen Metro
- Choose any of the top COUNTIES
- In this example, we’ll look inside Montgomery County (note the 95th percentile score in right column))
You can also see the same 3 High Appreciation/Cash Flow Dayton, OH counties, along with ALL Ohio counties, on the color-coded Micro Maps…
Now let’s drill down to find the best ZIP CODES inside Montgomery County, OH…
Below are those same “Top 10” Dayton, OH ZIP CODES on the Micro Maps…
Here are Dayton’s Top 10 Zip Codes for Cash Flow AND Appreciation (without the color-coded scores)…
Whether you’re looking for markets with a lot of appreciation, or high cash flow, or low home prices, or all of those, there is generally no single-best, winner-take-all market.
Typically, many markets across the country offer great prospects. In the example above, we intentionally started with the FIFTH-HIGHEST state for cash flow + appreciation and ended up in Dayton Ohio.
There are many other high scoring states, metros and counties we could have been equally confident in pursuing.
The main point is…
In less time than it took to read this article, you could have used the same tools and come up with a long list of markets and zip codes to target, all of which would dramatically reduce your risk, effort, capital and time.
Real Estate Success is dependent on where and when you invest. Spending a few MINUTES upfront with HousingAlerts can save you YEARS of frustration and failure.
Intelligent Investing Begins Right Here.
https://www.housingalerts.com/members/market-finder/cash-flow-finder/
Indicator Maps – for METRO and STATE
https://www.housingalerts.com/members/
Micro Maps – For County, Zip Code and Neighborhoods
https://www.housingalerts.com/members/maps/micro-market-maps/
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