The top rental return cities 📈

Morning! 🌞 Here's your daily dose of RE intel:

• 5 affordable cities with excellent rental returns

• Dave Ramsey says skip the home warranties

• Half of brokers struggled last year - prime time to get your license!

• 🔥 Deal of the Day! 🔥: 4 bd | 3 ba | Pigeon Forge, TN

We Name the Top 5 Cash Flow Cities Under the Radar

Folks, the real estate market is hot right now, but good deals still exist if you know where to look. As a real estate professional helping investors build wealth for over a decade, I've spotted five affordable cities delivering excellent rental income potential.

Let's start with Cleveland, Ohio. With median home prices around $110,000 and average monthly rents of $1,096, Cleveland's price-to-rent ratio sits at a healthy 8.3. Plus, home prices run just 4.5 times the median income - an attractive number signaling Cleveland real estate remains reasonably priced relative to local wages.

Indianapolis emerges as another smart bet, blending affordability and strong rents. Boasting a median sales price of $230,000 and average monthly rental income of $1,356, Indy's price-to-rent ratio lands at 14.1 - not dirt cheap but still appealing compared to pricier cities. Worth noting, Indy home prices run only 5.9 times median incomes.

Cincinnati also warrants a look, with median prices of $259,000 and average monthly rental revenue clocking in at $1,395. Translating to a 15.4 price-to-rent ratio, Cincy real estate delivers better cap rates than many major metros. And a home price-to-income ratio of 8.1 indicates market prices align with local earning power.

I love Toledo too, where you can scoop up properties for around $116,750 while collecting up to $895 in monthly rents on average. With home prices running just 4.5 times area incomes, Toledo remains an affordable option for buy-and-hold investors even with a 10.8 price-to-rent ratio.

Last but not least, Milwaukee, a perennial favorite, shows median home prices of $175,000 and average monthly rents of $1,174 - good for a 12.42 price-to-rent ratio. Plus, Milwaukee home prices come in at 5.6 times median household incomes, demonstrating that real estate here offers value relative to local earning power.

There you have it – five cities where modest home prices combine with strong rents to deliver sustainable cash flowing properties. As always, run the numbers yourself, but the data indicates these areas warrant a hard look for buy-and-hold real estate.

Dave to Buyers: No Need to Waste Cash on Home Warranties!

Dave Ramsey just called out another money pit tempting homeowners - expensive home warranties! Ramsey pulls no punches, telling buyers "you're better off to self-insure against damage or things breaking down." Ouch. But America's most candid money expert speaks truth.

See, home warranties rake in profits by betting you won't actually use their services much. Yet they collect hundreds in premiums and fees yearly. Do the math - you'd likely come out ahead just pocketing those dollars and paying for repairs yourself as needed.

Indeed, Ramsey notes most home repairs run less than $500. So even several appliance failures or AC fixes a year may not surpass your warranty costs. And that's if the warranty company actually covers the full bill, which they often don't.

Here's what really burns me up - shoddy repairs. Home warranty companies contract with the lowest-bid handymen who do patchwork fixes rather than comprehensive solutions. I've seen way too many friends waste money on warranties only to end up paying out-of-pocket later for quality repairs anyway.

Dave says it best: "Remember, a home warranty only covers the cheapest repairs or replacements." Too right! Don't expect white-glove service from bargain basement contractors.

Friends, let this be a lesson - skip the home warranty and self-insure instead. Stash those hundreds of dollars into an emergency fund each year. Then you control who to call when things break, not some 800 number leaving you on hold. As Ramsey wisely notes, pocket what would have been "profit and marketing dollars for the extended warranty company." I second that emotion wholeheartedly!

Bottom line - don't fall for home warranty pitches promising financial protection. An emergency fund delivers far more security and flexibility. I usually have the seller pay for at least 1 year of home warranty. It has come in handy many many times. Just make sure you go with a reputable company.

2024 Looking Bright for New Real Estate Agents!

Nearly half of real estate brokers struggled paying rent last year. Massive office vacancies. Home sales plunging. But don't let the doomsayers fool you. Savvy entrepreneurs spot opportunity when others see only obstacles. And right now, real estate offers huge upside for those willing to hustle.

Let me explain. America spans a vast and diverse landscape. Even amid industry turmoil, many local markets thrive thanks to affordable housing and steady demand. Forget Los Angeles and Manhattan - think Buffalo, Cincinnati, Columbus. These areas top hot market lists for 2024 due to high quality of life and reasonable home prices. And with fewer agents competing, the talent shortage leaves room for new players to grab market share.

Now add in state-by-state licensing. You could live in Ohio but broker deals online for clients in red-hot North Carolina or Tennessee. Geographic flexibility maximizes your reach and commissions. Just steer clear of the struggling commercial sector - stick to traditional residential sales.

Look, going solo as a new agent takes hunger and patience. Most only earn on commission initially. So consider keeping a second job to pay bills as you build your book of business. But once established, six-figure incomes abound in this game for hustlers willing to put in the work.

And get this - do it right and you hold the keys to your very own real estate empire. Top agents flip homes and buy rentals, leverage insider access to find deals and financing. Imagine an endlessly growing portfolio funded by your commission checks.

So while the fearful fret over gloomy headlines, I see a wide open field for hungry entrepreneurs to claim their stake. Yes, real estate is high risk, high reward - but there's a reason they say the biggest fortunes are built here. What better time to get into the game? (source)

🔥 Deal of the Day! 🔥

Address: 459 Sugar Mountain Way, Pigeon Forge, TN 37863

This property at 459 Sugar Mountain Way, with its unique A-frame design nestled on a secluded, beautifully wooded lot of just under 3/4 of an acre, offers a serene getaway just 1.5 miles from the Pigeon Forge Parkway, combining privacy and proximity to local attractions and the national park, making it an ideal vacation rental with strong income potential.

Airdna data:

Estimated monthly payment: $4,564//month

Estimated monthly revenue: $6,758/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Stay tuned all week as we uncover more ways to build your rental empire! Until tomorrow.