Would you buy a rental property for $100,000 ($30,000 + $70,000 renovation) that generates $2,067/mo rent and $1,500/mo free cash flow BUT is located in a top 10 "unhappiest" city? The city is Johnstown, PA.
Now this is an attractive investment from a cash flow perspective, but we were admittedly surprised that only 19 of the 379 investors polled would not do this deal.
According to a study, "Unhappy Cities", published by the National Bureau of Economic Research, Johnstown, PA ranks 6th in the top 10 for the least happy American regions.
Johnstown City, PA by the numbers (US Census Bureau):
We spoke with a Section 8 housing coordinator at the Johnstown Housing Authority who provided the following insights:
We are always in need of quality housing, there is a shortage in Johnstown. If these units were made available to the program, they would fill quickly.
Section 8 Rates (2021):