Newbie & long distance

New to Real Estate · CA · Member since 2024 · 8 posts · 11 votes

Hi!

I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family. After reading & researching, I have decided to take the real estate route, read 'Rental Property Investing" and came out with the plan to buy single family homes LTR cash flow. I live in California, but being the market it is, I want to invest outside. I have garnered a 50K to get started, I am having difficulty choosing markets, although I have shortlisted it to be a 'landlord friendly state". It looks so wide and vast, I am overwhelmed and don't know where to start. I have been reading the forums out here but how should I narrow down to that one market?

I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?

What should be my next step to narrow down and research?

I am also beginning to talk to CPAs and attorneys, but not sure What all questions I should have cleared at a minimum, to confidently take the big step.

I may be over thinking, but I think it is also the cautious me who does not want to screw up financially in my desire to help the family financially.

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Travis Boyd

Rental Property Investor · Everett, WA · Member since 2024 · 16 posts · 26 votes

Hi Radhika! I can 100% relate with you. Over the last three weeks I've read 7 of the real estate books and spent hours listening to biggerpockets podcasts trying to learn as much as a I can and narrow down my focus. I relate with knowing I want to build my real estate portfolio but feeling overwhelmed with how to choose a market (I live in Seattle which is similar to CA with regards to the price to rent ratio challenges), so I wanted to share my current plan. I have done a couple hours of initial research searching for top markets and have an initial list that I'm researching including Detroit, Memphis, and OH (Columbus, Dayton, Cleveland, Cincinnati) to start. I have spoken with an agent/PM in Detroit that somewhat scared me away from the Detroit market (eviction rate is currently 8% down from 20% 5 years ago and such a different environment that I'm familiar with). I also have learned Memphis can be quite spotty (a dangerous block can be just a couple blocks from a good renting location so you really need a boots on the ground agent/team that you can trust). I'm less overwhelmed the more I talk with people, and everyone has been helpful and happy to chat with me. Now I realize it is going to take a couple months of talking to real estate investors and agents etc to help me slowly dial in my market territory. I am not much closer that I was a couple weeks ago, but the more I talk with people the more confident I get that I will get there, and you will too in time! It may not be a bad idea to give yourself a few months to network and learn. Also, I've been asking most people I talk with for references and keep getting in contact with more people, all of whom have been happy to chat for a few minutes. It sounds like you've got the ball rolling in the right direction already, so keep up the great work!

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
30K is not enough to start OOS. I would save up a little more. 30K would be a 20K ish DP which would be 80-100K. That won't get you super far and property would not be in a ideal area. There are plenty of markets, a lot of people choose the Midwest. Which ever market you choose build a team and spend time connecting, networking. If you can start local or close whether it's a house hack or being creative I would first
1 Reply
Radhika S.
OP
New to Real Estate · CA · Member since 2024 · 8 posts · 11 votes
1y
Hi Caleb, Thank you, i am checking out the midwest markets as well... and i mentioned of a 50k in savings as of now
1 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Quote from @Radhika S.:

Hi Caleb, i mentioned a 50K

I can't read lol. 50K is a good start. I would leave 10K for anything that comes up after the fact. 40K would be 120-160K range on a SF. Not going to be anything crazy but will get you in the door. There are plenty of markets so that is up to you. Is there any markets within a few hours that interest you? Starting out you want to establish a team and visit wherever you go to invest. Outside of something within a few hours of you midwest is very common - Kansas, Missouri, Ohio. There is also the sun belt markets.
1 Reply
Radhika S.
OP
New to Real Estate · CA · Member since 2024 · 8 posts · 11 votes
1y
:)

Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK, Cleveland, TN and Ownsboroo, KY
0 Reply
Julia Lyrberg
Lender · TX · Member since 2024 · 308 posts · 196 votes
1y
Hi Radhika! It sounds like you’re taking all the right steps to set yourself up for success. Narrowing down a market can definitely feel overwhelming, but focusing on key factors like job growth, population trends, and rental demand can help. Since you’re looking for landlord-friendly states, consider areas in the Southeast or Midwest, where affordability and cash flow potential are often stronger.
2 Reply
James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
1y
Quote from @Radhika S.:

:)

Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK, Cleveland, TN and Ownsboroo, KY
Ok kind of curious how Owensboro made your list. Out of the areas in KY that is not one I would have thought would be on most out of state investors radars.
REI James w/ eXp Realty54 Reviews
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Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
1y
Quote from @Radhika S.:

Hi!

I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family. After reading & researching, I have decided to take the real estate route, read 'Rental Property Investing" and came out with the plan to buy single family homes LTR cash flow. I live in California, but being the market it is, I want to invest outside. I have garnered a 50K to get started, I am having difficulty choosing markets, although I have shortlisted it to be a 'landlord friendly state". It looks so wide and vast, I am overwhelmed and don't know where to start. I have been reading the forums out here but how should I narrow down to that one market?

I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?

What should be my next step to narrow down and research?

I am also beginning to talk to CPAs and attorneys, but not sure What all questions I should have cleared at a minimum, to confidently take the big step.

I may be over thinking, but I think it is also the cautious me who does not want to screw up financially in my desire to help the family financially.

It seems like you know what you are looking for, it seems like a good time to choose a market that fits what you want (which you are doing). Next is learning more about those markets and what they can offer. You mentioned Ohio and Ky, I am licensed in both. Would love to talk more about what it is specifically you are looking for because 50k is normally the minimum I recommend so you could definitely make something work. Shoot me a message if we can talk some more about this!
[email protected]859-443-4952
Sam McCormack Realtor
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2 Reply
Ray Lin
Rental Property Investor · MS · Member since 2018 · 67 posts · 46 votes
1y
Quote from @Julia Lyrberg:

Hi Radhika! It sounds like you’re taking all the right steps to set yourself up for success. Narrowing down a market can definitely feel overwhelming, but focusing on key factors like job growth, population trends, and rental demand can help. Since you’re looking for landlord-friendly states, consider areas in the Southeast or Midwest, where affordability and cash flow potential are often stronger.
I agree. The Southeast and Midwest States are very landlord friendly states. If the tenants don't pay, they can be evicted within 30-60 days. In my experience, the homes appreciate very slowly, but the cash flow is great.
1 Reply
Account Closed
Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
1y
Hi, yes, the Ohio market is a great place to invest in real estate. It is definitely a competitive market.
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
1y
Quote from @Radhika S.:

Hi!

I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family. After reading & researching, I have decided to take the real estate route, read 'Rental Property Investing" and came out with the plan to buy single family homes LTR cash flow. I live in California, but being the market it is, I want to invest outside. I have garnered a 50K to get started, I am having difficulty choosing markets, although I have shortlisted it to be a 'landlord friendly state". It looks so wide and vast, I am overwhelmed and don't know where to start. I have been reading the forums out here but how should I narrow down to that one market?

I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?

What should be my next step to narrow down and research?

I am also beginning to talk to CPAs and attorneys, but not sure What all questions I should have cleared at a minimum, to confidently take the big step.

I may be over thinking, but I think it is also the cautious me who does not want to screw up financially in my desire to help the family financially.

I have been reading the forums out here but how should I narrow down to that one market? - I would select a market that allows you to purchase a cheap (under $150,000) single-family in a C+ or better market. This will fit your budget. Most midwest markets offer this type of inventory.

I am also beginning to talk to CPAs and attorneys, but I am not sure what questions I should have cleared at a minimum to confidently take the big step. - First, I recommend speaking with a lender to find out if you can purchase the property in the name of an LLC. If the lender does not permit this, your attorney and CPA will have limited options. They might suggest transferring the title to an LLC after you complete the purchase.

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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Evan HoppleBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
1y
Quote from @Radhika S.:

:)

Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK, Cleveland, TN and Ownsboroo, KY

Rental regulations in Ohio can vary a lot from city to city, with Cleveland being the most heavily regulated. Dayton could be a good alternative, offering similar price points.
To narrow your options further, consider factors like population and job growth, cash flow potential, and the quality of neighborhoods you’d feel comfortable investing in.

[email protected]614-924-8151
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Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 463 posts · 253 votes
1y
Hi Radhika-
Congratulations on being a homemaker with young kids and looking to do more for the family financially now that the kids are older.
You have 50K to get started but are having difficulty choosing markets and deciding where to begin and you are thinking about single-family long-term rentals out of state because you live in California.
I would encourage you to start with duplexes, preferably with 2 bedrooms in each unit for tenant longevity, and ideally with separate utilities. This way you always should have cashflow coming in and consider renting to section 8 for a government backed rent check.
In a market like Lansing, Michigan, you can get a duplex for $150K or under. There is strong economic development because it is the state capital which drives demand for housing. Cost of living is also lower in Lansing so repair costs are lower.
You will want an excellent, locally property manager that handles management and repairs, along with an investor friendly Realtor, CPA, lender, insurance agent, and attorney.
To Your Success!
2 Reply
Radhika S.
OP
New to Real Estate · CA · Member since 2024 · 8 posts · 11 votes
1y
Quote from @James Wilcox:

Quote from @Radhika S.:

:)

Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK, Cleveland, TN and Ownsboroo, KY
Ok kind of curious how Owensboro made your list. Out of the areas in KY that is not one I would have thought would be on most out of state investors radars.

I am still in the initial stages of my research, but Owensboro made into the list while choosing candidates based on cities with diverse economy with significant industries for an LTR. However, I also understand that lower housing cost may saturate the rental market.
While trying to understand your thoughts on this, why did you think out of state investors would not consider it?
1 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1y
@Radhika S.
you are right to be cautious. 'cash flow' has been way, way oversold. it typically takes 5-10-15 years to stabilize a property, get a good tenant in, and actually generate net cash flow, especially with prices and interest rates so high.
if you're in it for the long term, and willing to weather some early storms, great. but if you want immediate cash flow - you're better off in a savings account.
https://www.biggerpockets.com/forums/12/topics/1215726-break...

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...
2 Reply
Radhika S.
OP
New to Real Estate · CA · Member since 2024 · 8 posts · 11 votes
1y
Quote from @Nicholas L.:

@Radhika S.
you are right to be cautious. 'cash flow' has been way, way oversold. it typically takes 5-10-15 years to stabilize a property, get a good tenant in, and actually generate net cash flow, especially with prices and interest rates so high.
if you're in it for the long term, and willing to weather some early storms, great. but if you want immediate cash flow - you're better off in a savings account.
https://www.biggerpockets.com/forums/12/topics/1215726-break...

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

Thanks Nicholas, Yes, I understand that it takes time and in for long-term! Also, that is why I am looking at SFR compared to duplex etc, to keep the initial headaches simpler with just one tenant to manage

0 Reply
Ben TrageserPro Member
Accountant · Montclair, NJ · Member since 2020 · 218 posts · 104 votes
1y
Welcome! Happy to connect if you have any questions
[email protected]
1 Reply
Dennis Fernandez
Investor · Dallas, TX · Member since 2017 · 71 posts · 44 votes
1y
Hello and welcome!
We buy houses in major markets in the states of TN, TX, OK and AR. Over the years I've noticed that it's very helpful to simply go visit in person your city of interest to get a better understanding of the market and the people that live there.
3 Reply
Travis Boyd
Rental Property Investor · Everett, WA · Member since 2024 · 16 posts · 26 votes
1y
Hi Radhika! I can 100% relate with you. Over the last three weeks I've read 7 of the real estate books and spent hours listening to biggerpockets podcasts trying to learn as much as a I can and narrow down my focus. I relate with knowing I want to build my real estate portfolio but feeling overwhelmed with how to choose a market (I live in Seattle which is similar to CA with regards to the price to rent ratio challenges), so I wanted to share my current plan. I have done a couple hours of initial research searching for top markets and have an initial list that I'm researching including Detroit, Memphis, and OH (Columbus, Dayton, Cleveland, Cincinnati) to start. I have spoken with an agent/PM in Detroit that somewhat scared me away from the Detroit market (eviction rate is currently 8% down from 20% 5 years ago and such a different environment that I'm familiar with). I also have learned Memphis can be quite spotty (a dangerous block can be just a couple blocks from a good renting location so you really need a boots on the ground agent/team that you can trust). I'm less overwhelmed the more I talk with people, and everyone has been helpful and happy to chat with me. Now I realize it is going to take a couple months of talking to real estate investors and agents etc to help me slowly dial in my market territory. I am not much closer that I was a couple weeks ago, but the more I talk with people the more confident I get that I will get there, and you will too in time! It may not be a bad idea to give yourself a few months to network and learn. Also, I've been asking most people I talk with for references and keep getting in contact with more people, all of whom have been happy to chat for a few minutes. It sounds like you've got the ball rolling in the right direction already, so keep up the great work!
5 Reply
James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
1y
Quote from @Radhika S.:

Quote from @James Wilcox:

Quote from @Radhika S.:

:)

Yeah, I started off around Reno,NV & Tempe, AZ, but I think the median prices look way higher, so I am beginning to look and research around the areas of Fort Smith, AK, Cleveland, TN and Ownsboroo, KY
Ok kind of curious how Owensboro made your list. Out of the areas in KY that is not one I would have thought would be on most out of state investors radars.

I am still in the initial stages of my research, but Owensboro made into the list while choosing candidates based on cities with diverse economy with significant industries for an LTR. However, I also understand that lower housing cost may saturate the rental market.
While trying to understand your thoughts on this, why did you think out of state investors would not consider it?

@Radhika S. Out-of-state investors typically focus on larger cities like Louisville or Lexington, which dominate about 75% of discussions I have with OOS investors unless it's an STR market. Owensboro, the state's 4th largest city, has a population under 100K, and many OOS investors prefer cities with at least 300K residents and strong job growth. While Owensboro has its advantages, it doesn't usually stand out for most investors from a price to rent/ratio standpoint.
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3 Reply
Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1y
Quote from @Radhika S.:

Hi!

I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family. After reading & researching, I have decided to take the real estate route, read 'Rental Property Investing" and came out with the plan to buy single family homes LTR cash flow. I live in California, but being the market it is, I want to invest outside. I have garnered a 50K to get started, I am having difficulty choosing markets, although I have shortlisted it to be a 'landlord friendly state". It looks so wide and vast, I am overwhelmed and don't know where to start. I have been reading the forums out here but how should I narrow down to that one market?

I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?

What should be my next step to narrow down and research?

I am also beginning to talk to CPAs and attorneys, but not sure What all questions I should have cleared at a minimum, to confidently take the big step.

I may be over thinking, but I think it is also the cautious me who does not want to screw up financially in my desire to help the family financially.

Hi Radhika! As a new investor, you're absolutely right to be thorough and cautious. First things first: Before diving into any market, talk to a lender to understand your financing options and get pre-approved. This will give you a clear picture of your buying power and help you set realistic expectations.
Your $50K is a great starting point, but you'll want to budget beyond just the purchase price. Make sure you've got cash reserves for closing costs (around 2-5% of the purchase price, repairs and maintenance (aim for 1-2% of property value annually), vacancy periods (budget for 3-5 months of expenses), property management (if you're not self-managing), emergency funds for unexpected repairs.
When choosing markets, look for those with stable job markets, growing population, and strong rental demand. Columbus OH checks all these boxes and the rules here are super landlord-friendly! It's why I moved from Portland OR to invest here. Happy to send over some resources on why Columbus is a great real estate market to invest in.
[email protected]614-300-7535
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2 Reply
Katie MillerPro Member
General Manager, Publishing at BiggerPockets · Denver, CO · Member since 2017 · 459 posts · 642 votes
1y
Quote from @Radhika S.:

Hi!

I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?

That is super strange on the xls file! I will DM you the "Where to Start" spreadsheet! you can open it on excel, numbers, or google spreadsheets.
Podcast Guest on Show #217
1 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
1y
Congrats! How quickly are you able to save for a down payment? I only ask because every 10K gets you more and more borrowing power! I'm going to ASSUME you get to $80,000 for a down payment. THEN let's buy a 3 or 4 family for $400,000. We buy this property. WE RENT, REFINANCE, AND REPEAT!
0 Reply
Greg MillerPro Member
Rental Property Investor · detroit, MI · Member since 2020 · 21 posts · 25 votes
1y
Quote from @Travis Boyd:

Hi Radhika! I can 100% relate with you. Over the last three weeks I've read 7 of the real estate books and spent hours listening to biggerpockets podcasts trying to learn as much as a I can and narrow down my focus. I relate with knowing I want to build my real estate portfolio but feeling overwhelmed with how to choose a market (I live in Seattle which is similar to CA with regards to the price to rent ratio challenges), so I wanted to share my current plan. I have done a couple hours of initial research searching for top markets and have an initial list that I'm researching including Detroit, Memphis, and OH (Columbus, Dayton, Cleveland, Cincinnati) to start. I have spoken with an agent/PM in Detroit that somewhat scared me away from the Detroit market (eviction rate is currently 8% down from 20% 5 years ago and such a different environment that I'm familiar with). I also have learned Memphis can be quite spotty (a dangerous block can be just a couple blocks from a good renting location so you really need a boots on the ground agent/team that you can trust). I'm less overwhelmed the more I talk with people, and everyone has been helpful and happy to chat with me. Now I realize it is going to take a couple months of talking to real estate investors and agents etc to help me slowly dial in my market territory. I am not much closer that I was a couple weeks ago, but the more I talk with people the more confident I get that I will get there, and you will too in time! It may not be a bad idea to give yourself a few months to network and learn. Also, I've been asking most people I talk with for references and keep getting in contact with more people, all of whom have been happy to chat for a few minutes. It sounds like you've got the ball rolling in the right direction already, so keep up the great work!

Boots on the ground and your desire to visit the city is very important in a market. Just speaking to Detroit as thats where I have been investing for the past 6 years. People/investors (usually not investing in Detroit proper) love to scare people off with horror stories. There are so many C+ changing to B and beyond neighborhoods now in the city where a $130 - $150k price point will get you a +positive cash flowing SFH with growing equity in a city that is in a having a rebirth.
In my airbnbs, I have hosted several California natives looking to invest and or move to Detroit. Direct flights to many Cities in California. Good luck
1 Reply
Monica Bynum
Real Estate Agent · Memphis, TN · Member since 2019 · 76 posts · 39 votes
1y
Hey @Radhika S.! Monica Bynum in Memphis, Tn! We are a landlord friendly state and I have assisted many investors from Cali! We are a city of SFH. Happy to chat if you want to ask questions or learn more about my market.
0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1y
@Radhika S.
From my experience, when investing in real estate, it's important to focus on factors like cash flow, market trends, and job growth while considering landlord-friendly laws. Tools like Rentometer and BiggerPockets can help compare rental prices, and working with a CPA and attorney will ensure you structure your investments properly. Start with solid research, make calculated moves, and take it slow—real estate is a long-term investment.
Good luck!
[email protected]832-776-9582 Podcast Guest on Show #469
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