Choosing your market for new investors
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Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
1yI started off investing within 1 hour of my home, and now after many years of investing, I won't buy anything more than 20 minutes away.
Of the folks who I have known who invest remotely, I'd say 9 out of 10 of them have failed and lost money then sold at a loss or were lucky to break even (and that was with very favorable market conditions, low interest rates, a time where most markets had steep appreciation etc.). The 1 out of 10 who succeeded bought in markets that they had previously lived in and/or still have deep connections in like a family member living nearby or actually living in the property.
It's definitely not impossible, but much harder and much higher risk to invest in real estate remotely. So if you can make it work at all within 20 minutes of where you live, I'd do that!
28 Replies
- Attorney · Salt Lake City, UT · Member since 2025 · 144 posts · 180 votes1y
Hi Gal!
Starting your real estate investing journey in the greater Chicago area is a promising move, and you're absolutely right—market analysis is a foundational first step. As beginners, it's important to approach market research in a structured but manageable way. Begin by studying neighborhoods within your budget, focusing on key indicators like rental demand, vacancy rates, job growth, population trends, school quality, and crime statistics. Look at recent sales comps, average rents, and property tax rates to get a feel for cash flow potential. Use tools like Zillow, Rentometer, Redfin, or even local Facebook rental groups to understand what tenants expect and how fast units are renting. Attend local real estate meetups or connect with agents and investors who know your area well—on-the-ground insight is invaluable.
When deciding between local and out-of-state investing, there's no one-size-fits-all answer, but for most first-time investors, starting locally has major advantages. Investing close to home allows you to visit properties in person, oversee renovations, vet tenants, and handle problems directly—all while learning the ropes. You’ll develop an instinct for what a “good deal” looks like in your area, and your learning curve will be smoother because you’re immersed in the local dynamics. Self-managing initially also helps you understand what’s involved in property management, which makes you better at hiring and overseeing managers later.
Out-of-state investing can be appealing due to lower purchase prices or better cash-on-cash returns, but it requires more infrastructure—reliable property managers, contractors, and team members you trust from afar. While it’s not impossible, it increases your risk as a beginner. You have less control and visibility, and if something goes wrong, you're not nearby to step in. Many successful investors eventually branch out of state, but often after they’ve gained confidence managing local deals and building systems.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication. - Real Estate Agent · Member since 2023 · 831 posts · 577 votes1y
Hey Gal! By focusing on market analysis early, you’re already on the right track.
Choose 2–3 markets and start tracking deals weekly. Look at rent to price ratios, property taxes, graded maps, and job growth. It helps you build a feel for what is what there and what other claim is out there.
Starting local can be great for hands on learning, but out of state investing is definitely doable for your first deal if you build the right team (agent, PM, contractor). Many investors go that route when local returns don’t make sense. Best of luck!
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Logical Property Management4.9459 Reviews - Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes1y
Hello Hellp @Gal Dagan! I've never met a Gal, love your name!
I am also here in Chicago, so welcome to the real estate community...you will find it to be pretty small once you dive in.
I PERSONALLY highly recommend Chicago because of the strong network you can build with boots on the ground. If you can make it to as many of these: https://www.biggerpockets.com/forums/521-real-estate-events-... Meetups as much as possible and network, you will make AMAZING CONNECTIONS.
Start by finding people who are doing what you want to do and then hang out with them as much as possible and ask a lot of questions.
Quality Builders4.966 Reviews - Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes1y
I started off investing within 1 hour of my home, and now after many years of investing, I won't buy anything more than 20 minutes away.
Of the folks who I have known who invest remotely, I'd say 9 out of 10 of them have failed and lost money then sold at a loss or were lucky to break even (and that was with very favorable market conditions, low interest rates, a time where most markets had steep appreciation etc.). The 1 out of 10 who succeeded bought in markets that they had previously lived in and/or still have deep connections in like a family member living nearby or actually living in the property.
It's definitely not impossible, but much harder and much higher risk to invest in real estate remotely. So if you can make it work at all within 20 minutes of where you live, I'd do that!
- 1yEudith VacioPro MemberReal Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
Hey @Gal Dagan 👋🏽
Great questions! If this is your first investment, you might consider house hacking in Chicago. It can help offset your mortgage and provide valuable landlord experience. This strategy offers various financing options for owner-occupants, including FHA loans with low down payments, making it accessible for first-time investors. Additionally, being close to your property allows for easier management and quicker response to tenant needs.
As far as market analysis, you want to research the area to make sure you rents are on point and stay conservative with running the numbers. You want to include yearly expenses (landscaping, etc) and when you start looking at properties, take a look at the work that is needed. Major items include electrical, plumbing, roof, and tuckpointing.
Let us know what you decide on + best of luck! HAPPY RE INVESTING!
- 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Gal Dagan!
Love that you and your wife are jumping in together! Market analysis can definitely feel overwhelming at first, but keeping it simple helps: focus on population trends, job growth, rent-to-price ratios, and landlord laws. If the numbers don’t cash flow after estimating expenses like taxes, insurance, vacancy, and property management, it’s probably not the right market. Chicago has its perks, but if cash flow is a priority, it’s worth looking into out-of-state options. Markets like Memphis are investor-friendly with strong rental demand, affordable entry points, and solid teams that handle everything locally so you’re not stuck managing from afar. Plenty of first-timers invest out of state successfully! As long as you work with a reliable team on the ground. If you’d like, I can show you how that looks in practice. You’ve got the right mindset already!
- 1ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey Gal!
I would first decide on whether you want appreciation, cashflow, or a mix of both. If you want cashflow.. look for markets with low entry prices and higher rent averages. If you want appreciation, identify markets with expanding industries and positive growth signals.
Reafco - Samuel Diouf528 Reviews - 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
If you're starting out, focus on basics like job growth, population trends, rental demand, and landlord-tenant laws. Tools like Rentometer, Zillow, and MLS can help you check rents, neighborhood stability, and cash flow.
Local investing gives you hands-on control, while out-of-state investing can offer better returns if you have a good team. Pick one market, learn it well, and avoid overthinking!
Kerlous Tadres | Reafco Real Estate540 Reviews - 1yMarcelo SztainbergPro MemberNorthbrook, IL · Member since 2022 · 9 posts · 3 votes
Hi Gal! Being local in the greater Chicago area as well, I'd say that one of the things that I like about the area is the possibility to access almost any type of property and investment within a 30/60 minutes drive. You can find plenty of urban properties in the city, more SFHs in the suburbs and larger and more affordable properties in the exhurbs. A very large pool to pick from for your first try.
Like many, I'd also recommend joining a mastermind group. It's extremely helpful and motivating. I belong to one that meets regularly online, so there is a lot of flexibility to join. There is a good mix of new and more seasoned investors and we really enjoy our sessions. DM me if you want to know more about it.
Good luck on your search and enjoy the ride!
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1y
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
You are in a great market, keep it within 20 min of where you live and leverage your home field advantage. Going OOS is so much harder and very few do better than break even as Steve mentioned.
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
start local, AND hire a property manager. a good PM is worth the money and lets you focus your time on other things.
good luck
- Real Estate Agent · Chicago · Member since 2021 · 168 posts · 62 votes1y
Hi Gal,
Welcome to real estate investing! Starting local is often a smart first move — it gives you hands-on experience and better control. For market analysis, start with population trends, job growth, rental demand, and neighborhood comps. Out-of-state can work too, but only if you have a great property manager and understand the local market well.
Happy to chat more as you explore! #LETSGO
- Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes1y
welcome and congrats on taking the leap with your wife into real estate investing!
You’re doing the right thing by asking these questions early. Market analysis can definitely feel overwhelming, but keeping it simple helps: focus on population growth, job opportunities, rent-to-price ratios, and landlord laws. Whether you’re investing locally or out of state, those fundamentals matter most.
Starting locally has big advantages, you can see the properties yourself, build relationships with local agents and contractors, and learn the ropes firsthand. But if your local market doesn’t offer the returns you need, it’s totally possible to succeed out of state, as long as you have a trustworthy team on the ground.
If consistency is a big priority for you, I’d suggest considering the Mid South, places like Tennessee, Arkansas, Texas, and Oklahoma. Prices are more affordable, landlord laws are friendly, and rental demand is strong. Median home prices often sit around $200K and you’ll find a nice balance of steady yield and long-term growth. I’d be happy to chat more about what that could look like in practice if you're curious.
Good luck, excited to see where your journey takes you!
- 1yMike FisherBusiness MemberNew Lenox, IL · Member since 2024 · 103 posts · 58 votes
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
Hi Gal,
First off — congratulations for taking the first steps into real estate investing! It’s a big move, and you're right that getting a solid understanding of market analysis is key in making smart decisions early on.
I’ve been in real estate for over 20 years here in the Chicago area — as a builder, investor and property manager. I’ve worked with dozens of first-time investors in your exact situation, and I still remember what it was like making that very first investment myself.
A few thoughts based on your questions:
On Market Analysis:
As a beginner, focus on simplicity. I usually advise first-timers to start with 3 things:
1.) Cash Flow: What will your monthly income and expenses look like?
2.) Neighborhood Trends: Look at rent prices, school ratings, walkability, and local developments.
3.) Exit Strategy: Always know how you’d sell or refinance, even before you buy.
There are great tools out there, but I’ve found that even just running the numbers in a simple spreadsheet can be more valuable than chasing perfect data.
On Local vs. Out-of-State:
Both can work — but for your first deal, there’s a big advantage to investing locally. Being close by gives you a hands-on feel for what managing a property really takes. Even if you later decide to outsource management, having that firsthand experience makes you a smarter investor long-term.
I work with investors who go both routes, but most who start local feel more confident and in control — especially when building that foundation.
If you'd like, I'm happy to hop on a quick call or chat — no strings attached — and share more based on your goals and what neighborhoods you’re considering. It’s a lot to digest, and sometimes talking it through with someone who's been through it makes all the difference.
Wishing you both the best on this journey — it’s a rewarding one.
M Property Group LLC | MF Cashflow Property Management4.9102 Reviews - Memphis, TN · Member since 2024 · 180 posts · 223 votes1y
Hi Gal,
Welcome to the world of real estate investing- great to see you and your wife are laying all of the groundwork before diving in!
As an investment Realtor myself based in Memphis TN, I'd like to offer a slightly different perspective than what I've seen in some of these replies. While starting locally does offer hands-on benefits- like being able to check on the property yourself and learning the ropes up close-there's benefits to starting in an out of state market that can offer benefits you may not see in your hometown. For instance, I have many clients that have chosen Memphis for the following benefits they could not find in their own markets :
1. Low Entry Point Properties
2. Strong Cash Flow Potential
3. Steady Rental demand ( thanks to a large blue-collar workforce that is ever growing )
4. Landlord Friendly laws, which will make things much easier when you run into troublesome tenants in the future.
I work with many investors from across the country who have chosen Memphis for their first ( or next ) property, and the key is that I connect them with trusted property managers and contractors so they don't have to be local to succeed. Your team is everything. You can absolutely fail with a property that's a street over from yours if you don't have a good team backing you.
I would advise you that regardless of the market that you choose to get started in, to make sure you have a reputable property management company and general contract, and a realtor that is investment-focused and can find you the best deals.
If you'd like more info on Memphis and what it looks like to be a first time out of state investor here, I'm happy to help.
Best of luck as you get started!
- 1yMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 499 posts · 553 votes
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
If you can own & manage properties locally, then that'll be the best route for your investing development. You'll learn a lot from your first couple of properties that will help set a great foundation for the rest of your investing career.
Unfortunately, that doesn't always work for people financially so they end up going out of state (that's what I had to do back in 2021). Out of state can definitely be good option, but you'll still need to be active in managing your property manager in the early stages while you learn to work with each other.
Selecting the right market is going to also be pretty big for you. Choosing a market with good economic / population growth, good rental markets and landlord friendly laws are going to be ideal for you as an oos investor.
Happy to connect and share some experiences and mistakes I've made as both an out of state and in-state investor.
Reafco - Mike Paolucci 512 Reviews - 1yTerrance HillPro MemberRealtor · Memphis, TN · Member since 2010 · 425 posts · 117 votes
Hey Gal, great questions — and congrats to you and your wife on taking the plunge into investing!
With 10+ years as both an investor and an agent, I can tell you that choosing a market is one of the most important decisions you’ll make early on. Starting local can give you a big advantage as a beginner. You already understand the Chicago area, you can easily visit properties, and you can manage the first one yourself — all of which will help you gain hands-on experience faster and make fewer costly mistakes.
That said, Chicago can be a higher-price, lower-cash-flow market, so if your primary goal is cash flow, it might make sense to look out of state sooner rather than later. Many investors successfully buy outside their local market by teaming up with a solid property manager and a trustworthy local agent.
As you do your market analysis, look at:
Population and job growth
Crime rates and school ratings
Median home prices vs. rents
Landlord-friendly laws
Start by choosing one or two target cities that fit your goals and then drill into specific neighborhoods. My advice is to make sure you can visit the area or have someone you trust on the ground — at least for the first deal.
Your first investment is really all about learning the ropes and building a repeatable process. If Chicago feels too pricey or competitive, there’s nothing wrong with picking a more affordable, cash-flowing market to jump into — especially if you do your homework and have the right team.
- 1yAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I think Chicago and the greater area have a lot going for it. There's a ton of great jobs and extremely diversified. Education is fairly good compared to rest of country especially in the suburbs.
if you're going to invest locally, I'd plug into networking meetups and facebook groups to gain the local insights you're looking for.
talk with lenders to see what you can afford.
I would generally say house hacking is the easiest way to get into a more expensive market such as Chicagoland area. If you can't do that, perhaps doing a live and flip would work. And then the rest can be invested in another property. Happy to be a resource as someone in the same geographic area!
Brick House CPAs53 Reviews - 1yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
As beginners, it's usually smart to start local so you can learn the ropes hands-on—managing a property yourself teaches you a ton. For market analysis, focus on population growth, job trends, rent-to-price ratio, and neighborhood quality (look at crime rates, schools, and amenities). Investing out of state is doable, but it adds layers of complexity—especially with property management and unseen issues. Start where you can be most involved, build experience, then expand.
Good luck!
Wale — Houston-based investor agent working with buy-and-hold clients.
NETWORTH BUILDERS5236 Reviews - 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
Hey Gal, welcome to BP! That’s an exciting place to be, and you’re absolutely right — getting a solid handle on market analysis is such a key first step. One thing I’d say right away is to focus on aligning your investing strategy with your goals. If your main goal is strong cash flow and you’re finding that Chicago’s numbers aren’t penciling out (especially with higher prices and tenant-friendly laws), it might make sense to look out of state — a lot of investors are doing that right now. I actually moved from Portland to Columbus, Ohio in 2020 to start investing and now own 10+ rentals here. Columbus has been a great market for both cash flow and appreciation, and it’s still landlord-friendly with properties in the $130K–$180K range that can hit the 1% rule if you’re buying smart.
As far as market analysis, start with basic fundamentals: job growth, population growth, rent-to-price ratios, and local laws. Look at sites like Rentometer, City-Data, and even just Zillow or Redfin for neighborhood trends. Then compare rental comps to what properties are selling for to see if the 1% rule or positive cash flow is realistic. Also, don’t be afraid to talk to local agents or PMs — they can offer insights into tenant demand and red flags in certain areas. Managing locally has some advantages early on, but with a strong team in place, out-of-state investing is definitely doable — and in many cases, necessary to hit your numbers. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Palm Beach - Chicago · Member since 2024 · 17 posts · 15 votes1y
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
Chicago here as well, what part of Chicago are you in?
- 1ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @Gal Dagan:
Hello everyone,
My wife and I are new to real estate investing and are ready to take the plunge. We live in the greater Chicago area and are starting to wrap our heads around market analysis, which feels like a crucial first step.
We're currently debating whether to focus our initial efforts on the local Chicago market and start by managing the property ourselves,or look into opportunities out of state and use a property maneger.
We'd be incredibly grateful for any advice on How do you approach market analysis as a beginner? and if it is advisable to invest out of state for your first property?
Buy close to home if possible! If not, maybe you have family OOS near some areas that are popular for real estate investing? I have some investors who do that
Do people fail? 100%. But part of that has to do with poor knowledge/understanding of an area, and that is where your agent is supposed to support you there. Another part of it is inherited tenants, which is something i've learned the hard way to try to avoid if possible, and if there are tenants, do your due diligence on them. There are other reasons, but sometimes there isn't much you can do, especially if you get an inspection done and they don't find certain things. That is another one i've seen.
So much to consider. But especially for your first, stay close to home if possible
Sam McCormack Realtor - Lender · Chicago IL · Member since 2020 · 357 posts · 229 votes1y
Hey @Gal Dagan - welcome to BP and your investing journey!
So much great advice already, but here’s one thing I always ask: What’s your budget? If you don’t know what you can (or want to) spend, it’s tough to choose the right market or strategy. Have you gotten prequalified yet?
Chicago has a ton of great opportunities—whether you’re flipping, holding, or house hacking—but parts of it can get pricey. That’s why I always suggest: if you can, start local. There’s huge value in being able to walk the property, meet the crew, and learn hands-on—especially on your first deal.
You got this!
- 1yJeremy MelloulPro MemberReal Estate Agent · Columbus, OH · Member since 2022 · 84 posts · 83 votes
Welcome to the process — good for you both for taking the leap!
I completely understand the appeal of wanting to invest locally — it can feel more comfortable knowing you can check on the property regularly. But unfortunately, in markets like Chicago, real estate investing can be pretty challenging because of the political climate.
I used to live in Los Angeles, and I’d never recommend anyone buy rental property there — prices are sky-high, the pro-tenant laws make it nearly impossible to evict if you have to, landlords have very few rights, and the amount of red tape and strict building codes can be ridiculous.
I moved to Ohio three years ago specifically so I could invest and help others invest here. It’s a much more landlord-friendly, stable market to operate in.
Just some things to really think about as you research where to buy — the local laws and climate can make or break a good deal.
Good luck — you’re already ahead of the game by asking the right questions!
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