Passive Real Estate Investing TBT: Ask Marco - Are Low Cost Properties a Good Strategy for Cash Flow?
Jan 2, 2026
In this engaging discussion, insights on low-cost properties under $100,000 are revealed. Marco highlights the difference between cash flow and appreciation strategies, emphasizing that lower-priced properties can indeed maximize cash flow. He shares real-world examples from cities like Memphis and Dayton, illustrating true net cash flow figures. The conversation also covers the importance of comparing deals and the potential pitfalls of investing in certain neighborhoods. This is a must-listen for aspiring investors seeking to build a cash flow-focused portfolio!
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Buy For Cash Flow, Not Appreciation
- Focus on lower-priced properties when your primary goal is maximizing cash flow.
- Buy income in dollar terms rather than chasing appreciation if you need steady monthly cash flow.
Markets That Favor Cash Flow
- Marco lists markets that tend to be cash-flow-centric and stable, like Memphis and Dayton.
- He characterizes them as smooth, steady, and relatively 'boring' markets for investors focused on income.
Lower-Cost Vs. Cheap Properties
- Distinguish lower-cost properties from 'cheap' ones that are distressed or poorly renovated.
- Target the lower two-fifths of the market (second quintile) rather than the absolute cheapest inventory.