Where to start investing in real estate?

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Where to start investing in real estate?

Matt Powers
Investor · Member since 2024 · 8 posts · 16 votes

Hi everyone,

I’m new to real estate investing and looking for guidance on where to start. I currently live in upstate New York but am considering relocating and would love advice on where to move based on strong real estate markets.

I’m particularly interested in:

  • -Investing in either short-term rentals (like Airbnbs) or long-term rental properties.
  • -Markets with promising ROI potential and steady demand.
  • -Locations that offer a good balance between affordability and growth opportunities, especially for someone new to real estate investing.

If you’ve relocated for real estate opportunities or know of hot markets to consider, I’d love to hear your thoughts.

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y

There is a million markets to choose from. I would first look at a place where you can transfer job wise that makes the most sense. Best pay compared to cost of living. From there find a house hack in that market. 

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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    1y

    I havent relocated for opportunities but have some experience with Mid-term rentals - For MTR I would find major hospitals and then search the houses around them, if they are priced really high / numbers wouldnt work, eliminate that market. Do that a few times and you should be able to dial it down to at least a few markets.  Airbnbs are hard in my opinion because the good airbnbs are going to be in markets that are already at a high cost to enter. If you think about investing out of state, Texas could be a good market to look into as well! 

    [email protected]254-718-4249
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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    There is a million markets to choose from. I would first look at a place where you can transfer job wise that makes the most sense. Best pay compared to cost of living. From there find a house hack in that market. 

    6Reply
  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
    1y

    Hey @Matt Powers, 

    I’ve lived in Columbus, OH, for the last four years, and it’s a fun city with a growing population and a strong job market. Short-term rentals are popular around the downtown area and surrounding neighborhoods, mid-term rentals are common to target traveling nurses and doctors from health facilities like Nationwide Children’s Hospital.

    I’ve also spent time living in Cincinnati and it has a lot of unique character. It doesn’t feel as “Midwest” as Columbus does, with a more distinct vibe. Cincinnati is a well-established city supported by five Fortune 500 companies, which sustains a strong local economy.

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    • Stevan Stojakovic
      Financial Advisor · FL · Member since 2024 · 455 posts · 103 votes
      1y

      One could argue that in today's economy, long-term rentals are the smartest starting point. They offer consistent cash flow and steady demand as rising housing costs continue to push more people into renting. Long-term leases are less operationally complex and face fewer regulatory risks - more stable and scalable option. Affordable markets in growth regions, like the Midwest or Southeast, provide excellent opportunities for ROI while minimizing upfront investment. Let me know if I can help you further.

      Best regards, Stevan

      1Reply
    • Zeke Liston
      Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
      1y
      Quote from @Matt Powers:

      Hi everyone,

      I’m new to real estate investing and looking for guidance on where to start. I currently live in upstate New York but am considering relocating and would love advice on where to move based on strong real estate markets.

      I’m particularly interested in:

      • -Investing in either short-term rentals (like Airbnbs) or long-term rental properties.
      • -Markets with promising ROI potential and steady demand.
      • -Locations that offer a good balance between affordability and growth opportunities, especially for someone new to real estate investing.

      If you’ve relocated for real estate opportunities or know of hot markets to consider, I’d love to hear your thoughts.


      Hi Matt, if you want good bang for your buck, I would consider the Midwest, specifically Ohio. You can pretty easily find a duplex to house hack in a good neighborhood in the $300,000-$400,000 range. Depending on the city, there are good opportunities for STR/MTRs as well.

      5Reply
    • Sam McCormackBusiness Member
      Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
      1y
      Quote from @Matt Powers:

      Hi everyone,

      I’m new to real estate investing and looking for guidance on where to start. I currently live in upstate New York but am considering relocating and would love advice on where to move based on strong real estate markets.

      I’m particularly interested in:

      • -Investing in either short-term rentals (like Airbnbs) or long-term rental properties.
      • -Markets with promising ROI potential and steady demand.
      • -Locations that offer a good balance between affordability and growth opportunities, especially for someone new to real estate investing.

      If you’ve relocated for real estate opportunities or know of hot markets to consider, I’d love to hear your thoughts.


       Hey Matt, while I have lived in Northern Ky my whole life, I have recently relocated way closer to Cincinnati. Still in NKY, but for investment purposes and being a lot more lively, I am househacking a little farther north. Would love to talk to you about it, my experience, and Greater Cincinnati as a whole. I think the area has exactly what you are looking for. Shoot me a message if you have questions for me!

      [email protected]859-443-4952
      Sam McCormack Realtor
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      0Reply
    • Nicholas L.Pro Member
      Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
      1y

      @Matt Powers

      hello. pick a place where you want to live, and house hack there.  i would never tell a random person on the internet where they should live.  but house hacking is the best way to get started wherever you choose.

      2Reply
    • Alan AsriantsBusiness Member
      Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
      1y

      Hey Matt, its awesome that you have this drive and ambition. What I would recommend for anyone that is looking to start in REI is to buy a Househack in a market they know and live in. This is hands down the best and easiest way to get started. It also kills two birds with one stone: an investment property, and a roof over your head.

      Having a vision for future projects like the ones you mentioned are great, but learning the ABCs of RE with a small investment (initial down payment - since you only need 3.5%-5% down on a primary) is the best way to sharpen your skills. Getting into other more risky strategies is usually not recommended for those without experience. 

      Don't get me wrong, you can make good money with STR, but having a property already to your name with some experience of being a landlord will only help - and you will already have a property under your belt.

      Good luck!

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    • Matt Powers
      OP
      Investor · Member since 2024 · 8 posts · 16 votes
      1y

      Thank you for all the insights!

      House hacking will most likely be my best option starting out, especially in a new city. 

      Looking for major hospitals is also a great idea I haven't heard of before, thank you for that tip!

      My biggest issue is just choosing a place I want to live with a solid market for real estate. Ohio may have a great market but to be honest I'm not very interested in living there. 

      I've been looking around North Carolina, mainly has a place I'd want to live not for the market. Anyone have thoughts on North Carolina for Investing? Specifically, Charlotte, Wilmington, Asheville or Greensboro? 

      3Reply
    • Travis Biziorek
      Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
      1y

      I would start by finding areas you actually WANT to live and go from there.

      Picking a place to call home simply because it has a real estate market that you feel will fit your goals is a great way to end up miserable. 

      Find some areas you want to be and then look at the RE markets. What's wrong with upstate NY, for example? There's plenty of great areas for REI up there, no?

      0Reply
    • Rick Albert
      Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
      1y

      So there are a couple of things to think about here:

      1. Be careful with these posts, this is when all the real estate agents come out saying their market is best, when it might not be. It is a sales tatic.

      2. You can arguably make it work in any market. I have properties in a few different markets. For example because New York is a generally more expenisve market, you have larger loan buy downs, bigger dollar appreciation, etc. An argument can be made that you will generate a higher net worth there than say middle of nowhere Alabama.

      3. What you want is what everyone wants. No market can promise you this. I recently bought in Saint Louis thinking it was a great market and it has killed us for example. 

      4. Check out howmoneywalks.com and see where people are moving to. 

      5. Honestly think about the lifestyle you want. If you are willing to move keep in mind you have a life to live. Don't move and be miserable.

      3Reply
    • Jared Smith
      Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes
      1y

      @Matt Powers there are endless possibilities and combinations of how you could approach this opportunity. I am putting in a link to something that may be help, a cost of living comparison calculator (https://www.bankrate.com/real-estate/cost-of-living-calculat...). 

      There are also other websites that have a Cost of Living index or other comparison tools. Once you figure out something that looks good to you then you'll be able to find an investing strategy that works for that area. I moved many times during my Navy career to markets all over the US and even Toronto. Tools like this helped us determine that retiring in the Memphis Metro area was good for us and has helped form our investing strategy, mainly SFR and some commercial spaces (flex, studios, small office). Every city will have something that works, you just have to figure out what that combination is that will work best to fit your needs and goals.

      Best of luck!

      1Reply
    • Jake AndronicoBusiness Member
      Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
      1y

      @Matt Powers

      Really good advice from @Caleb Brown. 

      There is no silver bullet. If you're able to house hack where it makes logical sense, you have a great chance of financially winning long term. 

      415-233-1796
      2Reply
    • Joe HammelBusiness Member
      Real Estate Agent · Metro Detroit, MI · Member since 2018 · 614 posts · 666 votes
      1y

      Since you’re considering relocating, I can’t recommend the house hacking investing strategy enough. I’ve personally seen a lot of successful house hackers in the Metro Detroit area. Another fun fact is that Detroit was listed as the #1 appreciating market in the country 2023.

      Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, solid ROI, and yes plenty of appreciation.

      I personally make well over $100k/yr cash flow from 21 properties here. All of which, I’ve purchased within the last 4 years.

      There are 2 types of people who dog on Detroit..

      1. People who don't actually own property in Detroit

      2. People who did it wrong and weren't able to execute.

      If you do it right, it’s arguably the best market to invest.

      Purchase: $80k-$130k

      Rent: $1100-$1500 (no rent control in MI)

      1% rule: .9%-1.4% rule deals

      Coc ROI: 5-12%

      Total ROI: 20-40%

      Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)

      Appreciation: 3-10%+ (has been double digit for a decade)

      Location: C+, B-

      These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

      We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

      The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those.

      We have found what works and repeat it as much as funds allow.

      Detroit has one the highest rent to price ratios in the country…and we focus on the best balance of price/location within the area.

      Here is a picture of my portfolio if you/anyone is curious.

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      4Reply
    • Julia Lyrberg
      Lender · TX · Member since 2024 · 308 posts · 197 votes
      1y

      Hi Matt! It’s great that you’re thinking strategically about where to relocate. If short-term rentals are on your radar, markets with strong tourism and year-round demand are key. Places like Phoenix, parts of Florida, and certain areas in Texas have been hot for both STRs and long-term rentals. Affordability can be tricky, but secondary markets near larger metro areas often offer a good balance.

      1Reply
    • Laura Shinkle
      Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
      1y

      @Matt Powers that's awesome that you're thinking about househacking to start out. Moving and buying your first piece of real estate is a lot in the next year! Since you're relocating to a new market, the best advice (like someone mentioned) is to figure out where YOU will be happy. You can make house hacking work anywhere, really. I work, live and play in Charlotte, I'm from Asheville, and I've lived in NC for almost 30 years. IMO here's the differences between the areas you mentioned:

      1. Asheville: Asheville is in the Blue Ridge Mountains, so it's a very outdoors focused community. Lots of breweries. Think hiking, mountain biking, white water rafting and a community overall focused on all natural things and sustainability. If this sounds like your perfect playground, go for it :) There are STR restrictions in these areas, so make sure you know what you're buying before you do.

      2. Charlotte: This is the largest city in the state, so if you're looking for a small town city vibe (even though its a large city, it still feels small sometimes) this might be it for you. Our downtown isn't big, but each neighborhood has a different feel, and we have affordable suburbs if you want to be close but not IN the popular areas. We also have a decent amount of breweries, UNC Charlotte, two lakes and the Catawba river, the White Water Center, major league football, soccer and basketball teams and minor league hockey, baseball and women's soccer league so there's always something to do. 

      3. Greensboro: More of a smaller town feel. More affordable, growing, but not that much going on (IMO). You're about 1.5 hrs from both Charlotte and Raleigh, so halfway could be a good compromise if you like more of a smaller feel but still near conveniences and shopping. 

      4. Wilmington: smaller than Greensboro, but has more of a tourist base since it's on the coast. The obvious attraction is the beach. UNC Wilmington is also located there. 

      So, overall, I think these four areas are very distinct in the style of life they offer. If you're not sure, do a road trip across the state, visit some of these areas and see what 'vibe' fits with you more. I think you can find affordable homes in any of these markets. If not in the exact spot you want to be, but at least the outskirts. Once you narrow it down, interview agents in the area and go from there!

      Good luck!

      1Reply
    • Todd AndersonPro Member
      Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
      1y

      Matt,

      As others have said you need to find where you want to live,  I work with investors that find house hacking new construction properties give them great bang for the buck.  I have worked with a number that were able to get into a new construction Quad with 5% down and control 1M of property for just over 50k.  

      This is a great option just look for a market that you want to be in that is growing.  

      best of luck on your start in to REI

      [email protected]651-492-5652
      0Reply
    • Jackson Harris
      Realtor · Phoenix AZ, USA · Member since 2023 · 209 posts · 81 votes
      1y

      Hey Matt, I moved to Phoenix myself a few years back from Seattle. Now I have a portfolio here of STR's and have helped multiple other out of state and new investors do the same, or reach their goals in whatever strategy they are wanting to move forward with (I started house hacking).

      Phoenix is a great market for STR's with the great weather and the amount of concerts, sporting events, etc that take place here. This market is also appreciating with people moving from the coastal states out here, there's a reason Phoenix always ranks in the top 5 best places to invest year over year.


      Would love to connect, I'll shoot you a PM!

      2Reply
    • Mackaylee BeachPro Member
      Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
      1y

      I recommend outlining your financial goals and definitely exploring work transfers to determine what suits you best. When considering the city option, it's essential to look beyond real estate and also evaluate how it can enhance your personal life.

      I would be delighted to discuss the Kansas City market. Our city is rapidly expanding, offering numerous job opportunities and a wealth of investment possibilities.

      [email protected]
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    • Matt BellamyBusiness Member
      Rockwall, TX · Member since 2024 · 4 posts · 1 vote
      1y

      I recommend investing in the area where you live and trying out house hacking—it’s a practical way to dip your toes into real estate! But if you’re considering moving, I have to say I’m a fan of Dallas. It has an awesome job market, which is bringing in a lot of new residents, and that keeps the demand for housing up. Plus, the cost of living is pretty reasonable compared to other major cities.

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    • Thomas McPherson
      Lender · Member since 2024 · 60 posts · 26 votes
      1y
      Quote from @Matt Powers:

      Hi everyone,

      I’m new to real estate investing and looking for guidance on where to start. I currently live in upstate New York but am considering relocating and would love advice on where to move based on strong real estate markets.

      I’m particularly interested in:

      • -Investing in either short-term rentals (like Airbnbs) or long-term rental properties.
      • -Markets with promising ROI potential and steady demand.
      • -Locations that offer a good balance between affordability and growth opportunities, especially for someone new to real estate investing.

      If you’ve relocated for real estate opportunities or know of hot markets to consider, I’d love to hear your thoughts.


       A great place to start would be a house hack, if you have more capital maybe a duplex, live in one side rent the other.  For where to move make sure it makes sense for your job and cost of living.  

      0Reply
    • Eduardo Nuri
      Member since 2020 · 5 posts · 1 vote
      1y

      I agree with some investors here, in Detroit you have plenty of opportunities to get decent cashflow now.

      Just use any Zillow like tool that sort listings by LTR cap rate, I use findvest.io they have decent vision AI filters to filter trash houses compared to mashvisor 

      26 doors and scaling

      Just make sure to copy and paste the addresses on spotcrime and don't buy in a warzone, and you should be fine.

      1Reply
    • Wale LawalBusiness Member
      Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
      1y

      @Matt Powers

      From my experience, deciding between short-term rentals (STRs) and long-term rentals (LTRs) depends on the market. STRs work best in tourist-heavy areas with high demand, while LTRs perform well in markets with stable economies and diverse job opportunities. Focus on factors like affordability, growth potential, demand, and landlord-friendly regulations to guide your decision.

      Good luck!

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    • Tim Ryan
      Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 655 posts · 622 votes
      1y

      @Matt Powers  Have you done any training, schooling in real estate investing?  That's the first place to start.

      I can tell you what to invest in and where - but you won't listen unless you really understand this business first.

      0Reply
    • Derrick Lewis
      Investor · Syracuse, NY · Member since 2022 · 16 posts · 9 votes
      1y
      Quote from @Matt Powers:

      Hi everyone,

      I’m new to real estate investing and looking for guidance on where to start. I currently live in upstate New York but am considering relocating and would love advice on where to move based on strong real estate markets.

      I’m particularly interested in:

      • -Investing in either short-term rentals (like Airbnbs) or long-term rental properties.
      • -Markets with promising ROI potential and steady demand.
      • -Locations that offer a good balance between affordability and growth opportunities, especially for someone new to real estate investing.

      If you’ve relocated for real estate opportunities or know of hot markets to consider, I’d love to hear your thoughts.


       I'm not sure why you would relocate, we live in a particularly affordable market with plenty of growth opportunity. 

      I helped with the rehab of a triplex in Cicero, north of Syracuse, and the investor refinanced at an ARV of 250k (in 2020). It would be worth quite a bit more now, prices in the area have gone up since the announcement of Micron building down the road. You could live in a unit and still have a little cash flow at that price.

      I'm not sure the rent prices in Ohio but I don't see how you would be cash flowing too well at 400k for a duplex. I've bought 3 duplexes around Syracuse, 2 being in not so great areas of the city rented to section 8 I wouldn't recommend but I do cash flow over 1k/month on those I bought for a little over 100k. The 3rd is north about a half hour in a decent small town, easier to deal with tenants and cash flow around 900 a month.

      0Reply
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