I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
just for a countervailing perspective - the macro environment is just about the worst it could possibly be right now for you to pick a random market in a random state and shell out $50K or more to get a random property and then turn it over to random people you haven't met.
i appreciate you mentioning that you're OK with breaking even - i believe it means that you may have more reasonable expectations than many others in your position - but the market is just tough right now. there is tremendous, tremendous demand for inventory - by homeowners, by investors, small and large. that means - no offense - anything that you can get without doing any work, or anything that someone serves up to you on a platter, or anything on the MLS - has been passed on by lots of other potential buyers.
1. don't pick a random market. pick one you have ties to or know well or can drive to or hope to move to eventually or like to vacation in.
2. do some more reading - books, forums. or better yet, go to the market you pick in person, and talk to the people you'll be turning your investment over to in person.
3. yes, you need a team. i'd start with realtor, lender and PM. i'd meet people in person (did i mention being in person?)
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
Hi @Byoung Bae, welcome to the BP Forum! Is $50k-$100k your targeted purchase price for a property or the amount of your down payment?
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
Hi @Byoung Bae, welcome to the BP Forum! Is $50k-$100k your targeted purchase price for a property or the amount of your down payment?
$50k-$100k is the investment I am willing and comfortable to make as down payment / repairs, etc. i have more cash reserves
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
@Byoung Bae If you go the Detroit route, I'd recommend connecting with @Drew Sygit. He runs a PMC in Detroit and knows the market very well. For Indy, would something like this be of interest to you: https://www.realtor.com/realestateandhomes-detail/8103-Grove...? The FMR for a 4 Bed in this zip code is $2,260, so there's a good chance you can get a higher rent than that.
I think your goal of getting your first RE investment for around $50k is doable as long as you plan to leverage debt (Loan). I currently have eight out-of-state investor clients that I've worked with in the past (some on more than one purchase) and they were all attracted to the Lansing, MI area for it's affordability and steady cashflow.
To answer some of your questions:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule". - You should hop on a phone call with some agents in the market you are interested in and ask about the area, their experience, to run some numbers with you and then even do some virtual tours with you of some active listings.
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers". - Vacancy rate & rent amount all depends on the market and neighborhood you're in. Some of my clients manage their own rentals (even when they live in another state) and simply have a local handyman to do repairs and showings. My other clients rely 100% on a Property Manager. Platforms like Zillow, FB Marketplace, Avail, and other PM softwares do great with rental listings.
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on? - You do this by exactly what you're doing here. By ASKING! You've already completed the first step. I'm may be biased (because I'm an agent), but a Realtor will be your most important team member to start off because we are usually the most networked and have Property Manager, Lender and Handyman recommendations for you already.
I hope this helps! As always, I'd be more than happy to hop on a call with you to go more in depth on this topic if you'd like.
Real Estate Agent · Member since 2023 · 831 posts · 577 votes
1y
Hey Byoung, once you've chosen a market, the next step is to build your team, starting with an investor friendly agent who understands cash flow and appreciation trends. They can help you find discounted deals, which is important if properties in your market don’t easily meet the 1% rule.
After connecting with an agent, ask for referrals to property managers they trust. When interviewing PMs, ask about their average lease up time, tenant screening process, and vacancy rates. You can also check platforms like Zillow, Rentometer to analyze rental demand and see how long similar properties sit on the market.
I recommend starting with an agent first, they can introduce you to other key team members, including lenders and contractors, to help streamline the process. If you’re considering specific markets. Best of luck!
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
Hey,
Great questions here. I would suggest the first thing to do is get connected to a lender that can fund your projects across the country so you know you are pre approved and have no delays in the purchase process. Are you connected to a lender at this point?
Second would be once you determine a market, then connect with a local real estate agent, preferably one who is an investor is better and he could help connect with contractors, title companies, wholesalers, etc...
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.
Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.
If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.
If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?
Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?
So, when investing in areas they don’t really know, investors should research the different property Class submarkets.
Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:
Class A Properties: Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation. Vacancy Est: Historically 10%, 5% the more recent norm. Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.
Class B Properties: Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation. Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support. Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 years
Class CProperties: Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts. Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages. Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.
Class DProperties: Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages. Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
The City of Detroit has 183 Neighborhoods we’ve analyzed.
DM us if you’d like to discuss this logical approach in greater detail!
Memphis, TN · Member since 2023 · 100 posts · 24 votes
1y
Byoung,
Since you've already narrowed down your markets, focus on getting prequalified and meeting with a few local realtors to gain a better understanding of where and how to invest in these areas. Hiring a property manager is highly recommended to handle day-to-day operations and leasing. While it may reduce your immediate returns, a good PM will help minimize risk and maximize long-term profitability.
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
1. Most high growth markets like Indianapolis or Columbus won't hit 1% rules in good areas. You're trading high growth/stability for lack of cash flow.
2. You'd use a trusted property manager, usually referred from your rockstar investor friendly agent. Average vacancy rate is probably 5-8% depending on how good your manager is and if they pre-lease before the tenants move out or not. You can look up comparable rents on active zillow for rent listings or on Rentometer.
3. You can use the BP agent finder or ask on here for a good realtor referral. Usually they have good PM, contractors, and lenders for you to use.
Overall the biggest recommendation is to narrow on a market and just commit to buying a deal there and learning.
Congrats on making the decision to make your first REI. You are starting off will asking questions to the BP community.
I would take some time and look at markets first. after deciding to invest out of state you have no restrictions on where to invest. Look to markes that are showing good steady population and Job growth. This will allow you to get in the way of appreciation. There will also be more tenants in this market and easier to find good tenants.
After you find a market that checks those boxes, you can then build your team. this can be done one by one or you can find a turnkey provider that has already done this. Many of the investors that i work with like going with the turnkey strategy. It allows them to focus less on the investment and more on making the money for the investment.
The last thing I would suggest you look into is New Construction. With a build to rent you have the opportunity to own the property for the first and best years of its life. The maintenance costs will be much lower, the appreciation will be higher, and all renters like being in a newer place. The investors that i work with find this to be a good way to get a more passive investment that still has the benefits of owning and controlling the property.
Best of luck getting started and connect with any questions.
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
@Byoung Bae There are full-service turnkey solutions; just keep looking. Eventually, you'll There are full-service turnkey solutions; just keep searching. Eventually, you'll come across my market in Kansas City and the cash-flowing properties in my inventory—many meeting the 1% rule and addressing all of your inquiries. For the past decade, I've collaborated with out-of-state investors like you. I’m happy to answer any of your questions.
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
Leverage + appreciation is what makes real estate worth the hassle and better than other investment options. If you are looking for cash flow, I'd recommend not investing out of state or in real estate altogether. The 1% rule is a metric from 2014. It doesn't exist anymore unless you are willing to take on the risks of a rough neighborhood.
Even if you go to a cheaper market, buy in the high appreciation neighborhoods. Buy the property that you want to own the most 10 years from now. Get on a plane several times to visit that market and get to know your potential vendors. If you don't get to know them and build some trust, you're just going to be dumb money or "the guy from California" that they up charge 20-100%.
Realtor · Indianapolis, IN · Member since 2017 · 41 posts · 14 votes
1y
Hey Byoung,
Great to see you taking the first steps toward real estate investing! As a realtor in Indianapolis who works with out-of-state investors, I can give you some insights:
First Step After Picking a Market – You’re on the right track looking at listings and running numbers, but I’d also suggest diving into neighborhood-specific data (rents, property appreciation trends, crime rates, etc.). In Indy, some areas will hit the 1% rule, but they may come with higher turnover or property management headaches. You’ll want to balance cash flow with tenant quality and appreciation potential.
Finding Renters & Vacancy Rates – Property managers (PMs) will typically handle leasing, but you should vet them carefully. Ask them for rent comps, average days on market, and their leasing process. Indy’s rental market is generally strong, but vacancy times depend on location, property condition, and pricing. You can also check Rentometer and Zillow’s rental listings for comps.
Building a Team – Your agent is key because they’ll help you find properties that actually make sense. After that, a solid PM is critical to keeping things running smoothly. Then, build out your handyman/contractor network. I know several good ones in all these areas and can absolutely connect you. I’d also recommend connecting with local investors for their thoughts.
If you’re serious about Indy, I’d be happy to help you navigate the market and put together a strong team.
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Hey Byoung,
You’re thinking about the right things upfront, which is key for long-distance investing. I built a 12-door portfolio in Detroit, and the process wasn't easy, but it's one of the few markets where BRRRR and strong cash flow still work—if you have the right setup.
A Few Thoughts on Your Questions:
1. First Step After Picking a Market
Instead of just running numbers on MLS listings, learn the market dynamics first. Things like neighborhood trends, tenant demand, and financing options will shape your strategy more than a basic 1% rule analysis.
2. Finding Renters & Vacancy Risks
This depends heavily on where you buy. Some areas have near-instant tenant demand, others sit vacant for months. Talk to local investors, study rent comps, and understand how leasing cycles work in your chosen market. If you’re considering Section 8, some cities (like Detroit) have high demand, which can reduce vacancy risk.
3. Building a Team – Who to Focus on First?
Your #1 priority is an investor-friendly agent or someone on the ground who truly understands the market. From there:
• Property management (critical for long-distance investing).
• Contractors (especially if you plan to add value).
• Lender (if financing is part of your plan).
Detroit is still one of the few places where BRRRR works well, and cash flow and appreciation are both on the table. If that’s something you’re open to, happy to share more insights and help however I can.
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
@Travis Biziorek Both of you had virtually identical 1, 2, 3 lists...just felt like it kicked back a response based on similar prompts. I suppose it was coincidental.
@Travis Biziorek Both of you had virtually identical 1, 2, 3 lists...just felt like it kicked back a response based on similar prompts. I suppose it was coincidental.
I mean... OP had 3 questions listed in a 1, 2, 3 format. I was just replying in the same format, trying to make it easy to read.
I hate big walls of text and believe most people do too.
1. If you are looking for 1% rule properties, you need to be looking markets with lower entry points relative to cashflow. For instance, there's a ton of properties that I source for my clients here in Memphis that can be anywhere in the $80,000-150,000 that will cash flow at the 1% rule. Now, of course not every single deal in Memphis will rent for the 1% rule, but we still consistently see these kinds of properties in this market.
2. As far as vacancies go, everyone budgets differently for that. If you're asking for my option and you want to play it safe, budget for 10% vacancy. That can be considered high, but will give you some wiggle room. And yes, if you are out of state, you will be leaning on your property management company to screen these clients and help mitigate vacancies. That's one of the reasons why finding a reputable property manager is vital to your business.
3. I'll tell you how we do it here at CrestCore, and this is the case in many situations. You find a Realtor in the market you're looking in and you should be able to lean on an investor-focused Realtor for property management, lender, and contracting contacts. Personally, I provide my clients with trusted companies in each of these sectors that we've been working with for years, and even utilize personally.
Hope this helps, and good luck as you get started.
@Travis Biziorek Both of you had virtually identical 1, 2, 3 lists...just felt like it kicked back a response based on similar prompts. I suppose it was coincidental.
I mean... OP had 3 questions listed in a 1, 2, 3 format. I was just replying in the same format, trying to make it easy to read.
I hate big walls of text and believe most people do too.
I'm an idiot that can't take the time to read the original post and see that there was a 1,2,3 list. That one's on me.
@Travis Biziorek Both of you had virtually identical 1, 2, 3 lists...just felt like it kicked back a response based on similar prompts. I suppose it was coincidental.
I mean... OP had 3 questions listed in a 1, 2, 3 format. I was just replying in the same format, trying to make it easy to read.
I hate big walls of text and believe most people do too.
I'm an idiot that can't take the time to read the original post and see that there was a 1,2,3 list. That one's on me.
I have a goal to buy my first investment real estate property in 2025. I live in CA and own my primary residence. I am not interested house-hacking. Primary goal for investing in real estate to grow my wealth (not to replace my W2 job).
As the first investment, I want a safer investment with a goal to break even in 12 months and focus on learning & long-term cashflow/appreciation. My budget for the first property is $50k ~ $100k. With this budget and my goals, I ruled out CA and looking out of state. With my budget and goals, I am looking at SFR in Indianapolis and Michigan (Detroit area, Lansing). Any suggestions on how to get started, some risks to be aware of?
I am reading BiggerPockets forum and I get a lot of information, with somewhat divergent recommendations. Some specific questions I have:
1. What should be the number first step after picking a market? I am looking at listings online, running my numbers. Many of them barely hit the "1% rule".
2. Assuming I purchased a property, how do I find renters? Do I lean 100% on the property manager to find renters? How do I know the vacancy rate / how long it took to find renters for comparable properties? This would be one of the most important inputs for "running your numbers".
3. Many suggest to "build a team" for out of state investor (e.g. realor, PM, handyman, etc). How do I go about doing this? Who is the most important member/first I should focus on?
Any other generic recommendation / tips are appreciated. Thanks in advance!
Hi Byong, I moved from Portland OR to Columbus Ohio to start my investing journey about 4-5 years ago myself! I definitely recommend finding your investor friendly agent first and then they should be able to help with building the rest of your team (lender, property manager, contractors, etc). Having a good investor agent will make or break your out of state investing experience. They can help with deal analysis, doing in-depth video walkthroughs, estimating scope of work and renovations, building your real estate team, learning neighborhoods, etc.
With that being said, I would recommend Columbus Ohio! The macroeconomics are on fire here - population growth, job growth, and companies moving and developing here. For example Intel headquarters, Google, FB, Amazon, Nationwide, Honda, (recently Anduril announced another 4k jobs to Columbus). Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential. Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k! Happy to connect and answer any questions you have!
just for a countervailing perspective - the macro environment is just about the worst it could possibly be right now for you to pick a random market in a random state and shell out $50K or more to get a random property and then turn it over to random people you haven't met.
i appreciate you mentioning that you're OK with breaking even - i believe it means that you may have more reasonable expectations than many others in your position - but the market is just tough right now. there is tremendous, tremendous demand for inventory - by homeowners, by investors, small and large. that means - no offense - anything that you can get without doing any work, or anything that someone serves up to you on a platter, or anything on the MLS - has been passed on by lots of other potential buyers.
1. don't pick a random market. pick one you have ties to or know well or can drive to or hope to move to eventually or like to vacation in.
2. do some more reading - books, forums. or better yet, go to the market you pick in person, and talk to the people you'll be turning your investment over to in person.
3. yes, you need a team. i'd start with realtor, lender and PM. i'd meet people in person (did i mention being in person?)
just for a countervailing perspective - the macro environment is just about the worst it could possibly be right now for you to pick a random market in a random state and shell out $50K or more to get a random property and then turn it over to random people you haven't met.
i appreciate you mentioning that you're OK with breaking even - i believe it means that you may have more reasonable expectations than many others in your position - but the market is just tough right now. there is tremendous, tremendous demand for inventory - by homeowners, by investors, small and large. that means - no offense - anything that you can get without doing any work, or anything that someone serves up to you on a platter, or anything on the MLS - has been passed on by lots of other potential buyers.
1. don't pick a random market. pick one you have ties to or know well or can drive to or hope to move to eventually or like to vacation in.
2. do some more reading - books, forums. or better yet, go to the market you pick in person, and talk to the people you'll be turning your investment over to in person.
3. yes, you need a team. i'd start with realtor, lender and PM. i'd meet people in person (did i mention being in person?)
I agree with the above comments. I think the property manager is one of the first people to talk to - the know the median rents, tenant base, etc. If you're going to go with an out of state market, go with an area that appreciates (no Class C or D areas). And visit the area several times - things look much different in person than on video and in photos.
In reference to Indianapolis, I did live there for several years and have flown back twice to check on my rentals. Get a full inspection (by an inspector who knows what they're doing) and a sewer line scope. I wouldn't recommend doing any major renovation (BRRRR) from 2000 miles away unless you have a high risk tolerance. Have an unbiased person, maybe another local investor, not someone on your agent's team, walk the property if you can't walk it in person.
