That is the case with many investors who want to build a rental portfolio or invest in real estate but their market is so crazy that a 2/1 shack is 200k or the taxes are so high that getting a positive cash flow is just not happening. So what do you do?



Find properties in another area, even another state, that are affordable and give you positive cash flow.

There are a lot of the areas that the news never talks about because they don't have 50 percent appreciation in a year. They just steadily grow at a measly 3 to 5 percent, and guess what When the Bubble burst they also didn't have 50% depreciation in a year. In fact, they just hang out and many people just don't even notice.

What are the keys to finding a stable area that won't blow up or down? Here are 7 steps to finding out your area properties to invest in.

1. Look for areas that have a strong rental market, where a good majority of houses are owned by investors who are renting property. It tells you that the taxes are low and the rent rates are high enough to attract investors wanting cash flow.

2. Find the areas that other out of state investors are buying in. Google is one way that comes to mind. Craigslist.com is also a very good source. In fact, I think it is one of the best sources to find good deals.

3. When you found the area, talk to people there about the markets overall appreciation. Find a market that is simply boring, one where no one really understood all of the hype about the real estate bubble because it wasn't happening there.

4. Once you find the area that other out of state buyers are buying in then the work begins. You are not there, so someone will have to do your legwork. What is the best way to find the local deals? Find the local wholesaler!

5. You will be just like a spy gathering intelligence. Go to the guy who is connected, who is the big dog dealer around, and try to get him on your side. That is what you do to find the best deals in the area.

6. Find out who are the hard moneylenders in the area. They will be friendly with the local wholesalers. Find the moneylenders, and you will find the best deal finders. They will be the ones finding deals and bringing buyers who need to borrow the money. Easy - just like a spy!

7. Talk to the wholesaler in your area. It's less work and much easier than working with realtors. Be sure you check and ask around, make sure he or she is the big dog, so to speak, running the volume-based business. They mark the deals up just a few thousand and move them so they can keep buying more properties. Besides, the local wholesaler is the one who gets all the best deals anyway. The one who is going to have all the relationships with the realtors anyway and get the 1st call on the deals.

On the whole, for the work the local wholesalers do - looking at hundreds of houses and making hundreds of offers to get their deals - they are more than worth the measly mark up they make. Let them find the best property mangers and contractors, and they will help you get properties - quality properties - faster, so you can achieve your investing goals.

Then it is time to get to work and do some deals, build your cash flow, and take charge of your future. Be Bold and Courageous, you won't regret it!