Where can I find "cash flow" properties?

Question

In what geographic areas will I find the most favorable ratio of low housing prices and high rents? Any tips on how to research this?

Answer 1

It's pretty simple.  The best cash flows general come from the lowest income neighborhoods.  If you, or a lot of people, are afraid to go there it's a pretty good bet that you can get some property that will cash flow.

The reason is simple.  The people that live in these places couldn't finance a gumball.  That keeps purchase prices low.  They all need to rent though, so rents are relatively high.  The problem you will have is identifying and keeping good tenants.