Am I wasting time looking for a “perfect” market?

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Am I wasting time looking for a “perfect” market?

Jackie Mcmorrow
New to Real Estate · Westchester, NY · Member since 2023 · 13 posts · 13 votes

Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

What I’m looking for

- Buy and hold property

- Long term tenants (ideally vacant at purchase)

- Single family home

- Class B to A (likely B for more cash flow opportunity) neighborhood

- Opportunity to add value so am more than open to rehab

- Cash flow as primary focus

- An area with comparatively low risk of natural disaster

- Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

    Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

    - Cincinnati, oh

    - Columbus,oh (but seems like too hot a market?)

    - Dallas/ Fort Worth, tx

    - Charlotte, nc

    - Toledo, oh

    - San Antonio, tx

    - Minneapolis, mn

    9Reply
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    Most Popular Reply

    Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y

    Cash flow is opposite of low risk.

    The amount of cash flow is the measurement of risk. It's called the risk premium. As risk rises, so does cash flow. As risk decreases, so does cash flow. 

    Yield is a function of risk.

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    18Reply
    See this reply in the discussion

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    • Diana Payne
      Member since 2024 · 4 posts · 0 votes
      1y

      I will listen into as I am in same boat

      0Reply
    • Joe FunariBusiness Member
      Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
      1y

      @Jackie Mcmorrow I am a fellow investor & realtor here in the Dallas/Ft. Worth area. I have been an investor for well over a decade. The end of this month this will be my 9th year helping other investors buy & sell in this market. Analysis paralysis is very common with first time investors. Furthermore, an OOS investor trying to narrow where your going to invest can be overwhelming for sure. There are pros & cons to any market you invest in. But why I personally invest in the DFW area is among the best landlord freindly laws in the country. Low cost of living, low purchase price of potential rentals, and continued job growth here can rarely be matched anywhere else in the country. There are too many great areas locally that make for a good long term rental to mention here. But regardless of the area you decide to invest in find a an agent that is ideally a fellow investor. I personally make sure my clients purchase in the areas where I do own in. And help you avoid pitfalls that many first time investors make. Don't reinvent the wheel is what I am getting at. My contacts from my many years of experience become my clients contacts. Find an agent willing to help you, provide the right contacts to help you grow your REI business. Hope this helps.

      4Reply
    • Joe VilleneuvePro Member
      Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
      1y

      What you are looking for, based on your list, isn't out of line.  Just because you haven't found it yet doesn't mean it doesn't exist.  the operative word is "yet".  What you may need to learn (notice I crossed out the word "may") are ho0w to use different strategies.  I have found many areas where traditional strategies don't come close to work, but using a different strategy turns out goldmines.

      1Reply
    • Russell BrazilBusiness Member
      Moderator
      Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
      1y

      Cash flow is opposite of low risk.

      The amount of cash flow is the measurement of risk. It's called the risk premium. As risk rises, so does cash flow. As risk decreases, so does cash flow. 

      Yield is a function of risk.

      [email protected]301-893-4635Podcast Guest on Show #192
      District Invest Group545 Reviews
      WebsiteView Page
      18Reply
    • JD MartinBusiness Member
      Moderator
      Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
      1y

      There's no such thing as a perfect market. There's only what works for the individual investor. That's going to change depending on a lot of factors, way too many to list them all but including access to capital, tolerance of risk, ability to absorb loss, current knowledge, future goals, etc. 

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      5Reply
    • Bruce Lynn
      Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
      1y

      There's no perfect market and things change as well.  Sometimes I think about the family with a 3 year old trying to pick the best school district based on current high school feeder rankings.  Not that it is a bad idea, but the rankings and demographics could very well change in the next 15 years.  The kid might not be as good as expected or could be way better than expected, so you really don't know where they will fit in.

      I think of cities like Frisco TX on the north side of the metroplex.  If people would have said 30 years ago that is the place to invest, everyone would have thought they were crazy.  A sleepy town of 5000 with one small high school and one flashing red stop light.  Now it is 225,000 population and I think 12 high schools now.  No one probably predicted this.  No one would have predicted Universal would be building a theme park, although there were some rumors about Disney a few years ago.  That too might make sense to put a Disney in the middle of the country.

      So I think you just have to look at your criteria and make the best guess of where things will be in 20-30 years.  One thing I like about DFW area is you maybe get much newer built homes that you can in places like Columbus and Cincinnati.  Right now the area just seems to be hitting on all cylinders.  Job growth, population growth, wage growth, diversified economy, good energy and water.  Generally landlord friendly.

      There are many other positive factors as well.  Always happy to discuss those with you as a realtor/broker/investor and long term resident here in the DFW area.

      5Reply
    • Nicholas L.Pro Member
      Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
      1y

      @Jackie Mcmorrow

      just a couple of reactions:

      -i'd pick a market within a couple hours of you.  the closer the better.  i'd even consider... investing in New York.  a lot of people must be making it work, as there are millions of rentals there.  how are they doing it?  go talk to successful PMs and investors and copy whatever they're doing.  if you're in NYC, OK, i get it, you might have to go a couple hours out. but you have lower cost markets in PA and NJ and NY within a couple hours.  you can look there.  it might take some effort, some driving, some networking.

      -there basically is no cash flow right now, anywhere.  not in NYC, not in Toledo. your first several years, or even longer, will be INvesting, in which you will be putting money in. almost all properties have kinks that need to be worked out once tenants move in - things that need to be fixed, or a big capex item that comes due when it wasn't supposed to. a roof, a furnace, or even a dishwasher.  prices are high, rates are high, closing costs are high. if you buy a property in Toledo, you put a huge chunk of money down, you pay 10-15K in closing costs, and then you 'cash flow' $82 a month, when do you truly start netting income? 

      -finally, when investors chase cash flow, often this happens:

      https://www.biggerpockets.com/forums/432/topics/1231840-sell...

      https://www.biggerpockets.com/forums/48/topics/1242392-rough...

      i am not trying to negative, just trying to set expectations. if you're in it for the long haul, and not going to be phased by a roof or a sewer line or a rough turn or a bunch of appliances going at once, then great.  but, so many new investors buy a property and are immediately disappointed when their 'cash flow' expectations are not met.

      hope this helps

      happy to dialogue further

      7Reply
      • Jackie Mcmorrow
        OP
        New to Real Estate · Westchester, NY · Member since 2023 · 13 posts · 13 votes
        1y
        Quote from @Nicholas L.:

        @Jackie Mcmorrow

        just a couple of reactions:

        -i'd pick a market within a couple hours of you.  the closer the better.  i'd even consider... investing in New York.  a lot of people must be making it work, as there are millions of rentals there.  how are they doing it?  go talk to successful PMs and investors and copy whatever they're doing.  if you're in NYC, OK, i get it, you might have to go a couple hours out. but you have lower cost markets in PA and NJ and NY within a couple hours.  you can look there.  it might take some effort, some driving, some networking.

        -there basically is no cash flow right now, anywhere.  not in NYC, not in Toledo. your first several years, or even longer, will be INvesting, in which you will be putting money in. almost all properties have kinks that need to be worked out once tenants move in - things that need to be fixed, or a big capex item that comes due when it wasn't supposed to. a roof, a furnace, or even a dishwasher.  prices are high, rates are high, closing costs are high. if you buy a property in Toledo, you put a huge chunk of money down, you pay 10-15K in closing costs, and then you 'cash flow' $82 a month, when do you truly start netting income? 

        -finally, when investors chase cash flow, often this happens:

        https://www.biggerpockets.com/forums/432/topics/1231840-sell...

        https://www.biggerpockets.com/forums/48/topics/1242392-rough...

        i am not trying to negative, just trying to set expectations. if you're in it for the long haul, and not going to be phased by a roof or a sewer line or a rough turn or a bunch of appliances going at once, then great.  but, so many new investors buy a property and are immediately disappointed when their 'cash flow' expectations are not met.

        hope this helps

        happy to dialogue further


         Nicholas, thank you! I appreciate the honesty. Better to hear the hard truth now than learn it the hard way after the fact. I'd love to take you up on the offer to chat more. 

        0Reply
    • Jonathan Bock
      Accountant · Bryn Mawr, PA · Member since 2023 · 409 posts · 321 votes
      1y

      @Jackie Mcmorrow

      Yes, you are wasting time in "perfection" land.   No business is easy and real estate is a business.  I really don't like OOS investing until one has a financial fortress built or at least some operational experience.  

      3Reply
    • Sam McCormackBusiness Member
      Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
      1y
      Quote from @Jackie Mcmorrow:

      Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

      Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

      What I’m looking for

      - Buy and hold property

      - Long term tenants (ideally vacant at purchase)

      - Single family home

      - Class B to A (likely B for more cash flow opportunity) neighborhood

      - Opportunity to add value so am more than open to rehab

      - Cash flow as primary focus

      - An area with comparatively low risk of natural disaster

      - Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

        Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

        - Cincinnati, oh

        - Columbus,oh (but seems like too hot a market?)

        - Dallas/ Fort Worth, tx

        - Charlotte, nc

        - Toledo, oh

        - San Antonio, tx

        - Minneapolis, mn


        Cincinnati is great depending on what a good amount of cash flow is to you. As well as that, being in an A area SFH, cash flow doesn't exist (i would say in most areas besides maybe Cleveland/Akron and other markets similar). B-/B areas areas can get a little bit after all expenses accounted for, but maybe only a couple % Coc ROI. C+ is better, C even better

        Shoot me a message if we can talk more about Cincinnati!

        [email protected]859-443-4952
        Sam McCormack Realtor
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        0Reply
      • Jimmy LieuBusiness Member
        Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
        1y
        Quote from @Jackie Mcmorrow:

        Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

        Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

        What I’m looking for

        - Buy and hold property

        - Long term tenants (ideally vacant at purchase)

        - Single family home

        - Class B to A (likely B for more cash flow opportunity) neighborhood

        - Opportunity to add value so am more than open to rehab

        - Cash flow as primary focus

        - An area with comparatively low risk of natural disaster

        - Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

          Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

          - Cincinnati, oh

          - Columbus,oh (but seems like too hot a market?)

          - Dallas/ Fort Worth, tx

          - Charlotte, nc

          - Toledo, oh

          - San Antonio, tx

          - Minneapolis, mn

          Hi Jackie, if you're looking for a great real estate market for buy and hold opportunities where you can still find the 1% rule, tons of appreciation potential, landlord-friendly, AND low risk of natural disaster, I would definitely look into Columbus! It's one of the hottest markets in the US right now with some of the fastest population and job growth and companies moving and developing here. I would recommend taking a look into 26B Intel headquarter development, Amazon, FB, LG, Google, Anduril, Nationwide, Ohio State University, and many other companies here! Additionally, you can still find properties for 120-180k that will positive cash flow and hit the 1% rule. Recently one of my clients purchased a $120k single family house and is currently renting it out for $1550/mo. Anything you buy in the Columbus Ohio market is currently blowing up in terms of appreciation growth. Happy to connect and answer any questions you have!

          [email protected]614-300-7535
          Jimmy Lieu, Red 1 Realty4.9120 Reviews
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          1Reply
          • Vincent Zhu
            Gilbert, AZ · Member since 2024 · 21 posts · 5 votes
            1y

            @Jimmy Lieu  what's the property tax and insurance cost on the rental you mentioned?

            0Reply
        • Nadeem Alamgir
          Real Estate Agent · Member since 2023 · 831 posts · 577 votes
          1y

          Hey Jackie, I totally get that feeling of being stuck when it comes to picking a market. Analysis paralysis is real, especially early on. One thing a few others touched on already is the trade off between cash flow and risk. Higher cash flow usually comes with more risk whether that’s an older property, tougher tenant base, or more hands on management. That’s not a bad thing, it just depends on what you’re comfortable with and how involved you want to be.

          Markets like Columbus or Cincinnati do have that balance. Some areas are more stable with modest returns, others offer more upside but might need more oversight.

          2Reply
        • Alecia LovelessPro Member
          Member since 2019 · 3k+ posts · 2k+ votes
          1y

          @Jackie Mcmorrow I recommend becoming an expert in your local market to start out. I have 2 properties that are a 30 minute drive from me and they get significantly less attention from me than my 6 properties that are within a 5-15 minute drive. I can only imagine how difficult it would be to focus on OOS investing.

          I’d recommend starting local and then maybe once you get a better feel for investing you can consider OOS.

          0Reply
        • Lilia Matlov
          Investor · New York Long Island · Member since 2024 · 20 posts · 8 votes
          1y

          If your priority is cash flow and growth, I think Dallas, Texas would be more suitable for you. If you have professional expertise in renovation and focus on the rent-to-sale ratio, Charlotte, North Carolina would be more suitable for you. It is worth noting that avoiding overheated markets can help you avoid many digital risks, but on-site inspections and using tools to screen for risks are also crucial.

          0Reply
        • Gregory SchwartzBusiness Member
          Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
          1y

          @Jackie Mcmorrow

          I can relate—my analysis paralysis was market-driven too. I’ve had (and am still recovering from) a serious case of "market FOMO."

          What I’ve learned in this business is that the people in the market matter more than the market itself. The most important factor is trust. I invest close to home because not only is it a solid market, but I also trust my property manager with my life... my wife is our property manager :)

          If you can’t invest close to home, then pick 2–3 markets and start building relationships. Reach out to agents, PMs, and other investors to see who feels like a good fit. As they say, bet on the jockey, not the horse.

          Good luck!

          [email protected]443-812-0357
          Schwartz Realty Group5117 Reviews
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        • Shawn McenteerBusiness Member
          Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
          1y

          Hi @Jackie Mcmorrow I get the attraction to out of state.  I was once in your shoes.  However I will let you know ultimately house hack in New Jersey got me to financial independence.  I will also let you know I have been a landlord for over a decade and am yet to miss a single payment of rent.  On top of this I close dozens of house hacking deals each year for clients who also have not missed rent payment, or have had to evict tenants.  NJ gets a reputation for being a tough state to invest in but most of the laws around it all apply to large unit apartment building.  1-4 units have different laws which tend to be more favorable for landlords.  On top of this knowing the towns to avoid play a huge part as well.

          I also want to mention is the cost of house hacking can be substantially cheaper becuase of owner occupied lending rules.  You will get much better rates and you can put low money down meaning $1m property in NJ only requires $50k down payment while a $400k investment property will require minimum of $100k.

          Last point I want to make is doing value add OOS is a massive undertaking.  Finding contract and team to handle the work is very tough.  Most OOS providers understand they make the money by increasing the value and selling you the turnkey property meaning they get all the gains while you have to hope for appreciation year over year.  Doing a value add House Hack locally is much easier to take on becuase you are living in the property, meeting with contractors, and have eyes on everything each day.  

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        • Remington LymanBusiness Member
          Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
          1y
          Quote from @Jackie Mcmorrow:

          Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

          Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

          What I’m looking for

          - Buy and hold property

          - Long term tenants (ideally vacant at purchase)

          - Single family home

          - Class B to A (likely B for more cash flow opportunity) neighborhood

          - Opportunity to add value so am more than open to rehab

          - Cash flow as primary focus

          - An area with comparatively low risk of natural disaster

          - Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

            Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

            - Cincinnati, oh

            - Columbus,oh (but seems like too hot a market?)

            - Dallas/ Fort Worth, tx

            - Charlotte, nc

            - Toledo, oh

            - San Antonio, tx

            - Minneapolis, mn


             Where you invest is important, but what truly makes a difference is building a fantastic team around you! Start by finding an exceptional realtor who can help you uncover the best deals. Next, look for a rock star contractor who will elevate your property's renovations to the next level. Don't forget to choose a great property manager to ensure everything runs smoothly! And let's not overlook selecting the right lender who can offer you the best rates and terms tailored to your goals.

            [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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            0Reply
          • Melissa JusticeBusiness Member
            Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
            1y

            @Jackie Mcmorrow,

            Hey Jackie,

            It’s great that you’re diving into real estate investing, and it’s totally normal to feel stuck at first—choosing the right market is a huge decision. You're asking all the right questions to ensure you’re making a solid investment. Let’s break down your criteria and look at the cities you're considering.

            Criteria Breakdown:

            1. Buy and Hold Property: You’re focused on steady, long-term rental income, so you’ll want to target markets with strong tenant demand.
            2. Long-Term Tenants: Stability is key, especially in Class B neighborhoods.
            3. Single Family Home: Ensures more control and less risk than multifamily properties, plus easier financing options.
            4. Class B to A Neighborhood: Typically more affordable with good rental demand and potential for value-add opportunities.
            5. Opportunity to Add Value: Look for areas with homes that need cosmetic updates—helps improve cash flow while building equity.
            6. Cash Flow Focus: Markets with lower property prices and decent rent-to-price ratios will maximize cash flow.
            7. Low Natural Disaster Risk: Avoiding areas prone to floods, hurricanes, or earthquakes is smart for reducing risk.
            8. Growing Population and Jobs: Ensure the market is growing to maintain tenant demand.
            9. Low Crime: This is critical for both tenant retention and property values.
            10. Corporate/Infrastructure Investment: Areas with big companies moving in or urban development projects often signal future growth.

            Thoughts on Your Cities:

            1. Cincinnati, OH:

            Pros: Good cash flow potential, affordable property prices, and a growing tech sector. It’s a landlord-friendly state with relatively low property taxes.
            Cons: Some areas can have higher crime rates, so it's important to choose the right neighborhoods. Look at suburbs like Hyde Park, Clifton, and Oakley for better safety.

            2. Columbus, OH:

            Pros: A strong job market with Ohio State University driving demand, growing population, and a stable economy. Relatively affordable compared to other major metros.
            Cons: Yes, it's a hotter market, but you might find good opportunities in the outskirts or up-and-coming neighborhoods. Areas like Clintonville and Worthington can be promising.

            3. Dallas/Fort Worth, TX:

            Pros: A booming economy, massive job growth, and a large population. There’s always high demand for rentals, especially in the suburbs. Low property taxes, and the state is very landlord-friendly.
            Cons: The market is competitive, especially in the more desirable areas. Look for opportunities in growing suburbs that are just starting to gentrify for more affordable options.

            4. Charlotte, NC:

            Pros: Rapid population growth, booming job market (especially in finance and tech), and a very favorable business climate. The city’s economy is strong, and there are many new developments.
            Cons: Like Dallas, it's a hot market, and prices may be higher than you'd like in the city center. However, neighboring towns like Concord and Gastonia might offer good options for cash flow.

            5. Toledo, OH:

            Pros: Low property prices and a stable economy. Great for cash flow with affordable entry points.
            Cons: Slower population growth and fewer job opportunities compared to larger cities. It could be a good option for the right property, but the long-term potential might be a bit lower.

            6. San Antonio, TX:

            Pros: A growing population, strong economy, and affordable housing market. It’s also a very landlord-friendly area.
            Cons: Crime can be an issue in certain areas, but focusing on the right neighborhoods (Alamo Heights, Stone Oak) can mitigate this. It’s a growing city, but watch for pockets of underdevelopment.

            7. Minneapolis, MN:

            Pros: Strong economy with a good mix of industries. Stable population growth and relatively low crime in certain areas. The market is still affordable compared to other metro areas.
            Cons: Winters can be tough, and some areas have higher property taxes. It’s not as landlord-friendly as Texas, so it may require more attention to local regulations.

            Final Thoughts:

            Top Picks: Dallas/Fort Worth, Charlotte, and San Antonio stand out for their strong job markets, growth, and cash flow potential. They also fit your criteria for landlord-friendly states and lower risk of natural disasters.
            Cincinnati and Columbus could also be great options for cash flow and long-term stability. If you’re looking for markets with more affordable entry points, these are strong contenders.
            Minneapolis is solid, but you might want to watch for higher property taxes and the impact of colder winters on the market.

            It sounds like you’re on the right track—analyzing markets and narrowing down options is a huge first step. Once you decide on a city, you can start diving into specific neighborhoods and look for properties that fit your investment goals.

            Let me know if you have any questions or want to dive deeper into any specific market! Always here to help!

            Best of luck,

            Melissa 

            [email protected]313-221-8718
            5Reply
          • Kerlous TadresBusiness Member
            Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
            1y
            Quote from @Jackie Mcmorrow:

            Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

            Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

            What I’m looking for

            - Buy and hold property

            - Long term tenants (ideally vacant at purchase)

            - Single family home

            - Class B to A (likely B for more cash flow opportunity) neighborhood

            - Opportunity to add value so am more than open to rehab

            - Cash flow as primary focus

            - An area with comparatively low risk of natural disaster

            - Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

              Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

              - Cincinnati, oh

              - Columbus,oh (but seems like too hot a market?)

              - Dallas/ Fort Worth, tx

              - Charlotte, nc

              - Toledo, oh

              - San Antonio, tx

              - Minneapolis, mn


              Hi Jackie — welcome to the journey! You're off to a great start by clearly defining your investment criteria — that puts you ahead of many beginners already.

              I’d definitely encourage you to keep Columbus, OH on your list. While it’s become more competitive in recent years, there are still strong pockets of opportunity, especially in up-and-coming neighborhoods like North and South Linden, Hilltop, or even areas surrounding Reynoldsburg and Whitehall. Columbus checks a lot of your boxes: growing population, strong job market (thanks to companies like Intel and Amazon), and a relatively low risk of natural disasters. Plus, Ohio in general still offers very reasonable entry prices compared to other states.

              If you’re open to some light rehab, you’ll find decent cash-flowing SFHs that can attract long-term tenants in Class B neighborhoods. And with landlord-friendly laws in the state, property management tends to be straightforward if you plan to invest remotely.

              Feel free to DM if you ever want more insight on the Columbus market — happy to share what I’ve learned! Best of luck as you take the next step — you’re definitely on the right track.

              [email protected]614-490-1163
              Kerlous Tadres | Reafco Real Estate540 Reviews
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              1Reply
            • Na Na
              Member since 2025 · 1 post · 0 votes
              1y

              South East

              0Reply
            • Forrest Webber
              Developer · Austin TX · Member since 2025 · 19 posts · 9 votes
              1y

              I can relate—analysis paralysis is real when starting out. My advice: there’s no perfect market, only one that fits your goals and risk tolerance. Start where you can take action and build momentum. Wishing you the best as you dive in 🙏🏻

              0Reply
            • Mohammed Rahman
              Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
              1y

              Got it! If you're stuck picking a market, don’t try to find the “perfect” one—just find one that checks most of your boxes and go deep on that. Look for steady population and job growth, landlord-friendly laws, reasonable home prices compared to rents, and neighborhoods that feel stable but still have room for improvement.

              You don’t need to pay for data right away. Use free tools like Zillow, Rentometer, Redfin, Census.gov, and BiggerPockets forums to get a feel. Once you pick 1–2 cities, start analyzing deals consistently. Talk to local agents, property managers, and investors to learn what’s really happening on the ground.

              Most importantly—don’t overanalyze. Pick a market, learn it, and move. The experience is where the real learning happens.

              0Reply
            • Laura Navaquin
              Investor · Member since 2024 · 83 posts · 58 votes
              1y

              Hi Jackie,  welcome to the world of real estate investing! You're already ahead of the game by clearly defining your investment criteria. That clarity will serve you well as you narrow down markets and start analyzing deals with intention.

              Market paralysis is real, especially when you're out-of-state investing, but I’ve found that taking imperfect action is what gets you out of the research loop and into real momentum. You're looking for strong fundamentals (cash flow, job growth, landlord-friendly laws, low disaster risk, etc.), and your short list reflects that.

              Here are a few quick thoughts:

              ✅ Cincinnati & Columbus, OH – Both offer great cash flow opportunities, strong rental demand, and solid fundamentals. Columbus is hotter, yes, but also growing fast with consistent job and population growth. In both markets, you can still find value-add SFRs in Class B areas if you act quickly and have a solid local team.

              ✅ Charlotte, NC & DFW, TX – These are more appreciation-heavy markets now, but with the right property and creative financing, they can still work for buy-and-hold. Be cautious with pricing and taxes in DFW — but strong job markets and infrastructure growth make both viable long-term plays.

              ⚠️ Minneapolis & Toledo – You may want to dig deeper on landlord laws and population trends here. Minneapolis, for example, has introduced rent control and some legislation that may affect long-term landlords.

              If you’re stuck, try this exercise I give to my clients:

              1. -Pick two markets to go deep on.

              2. -Set a 30-day window to analyze 20–30 properties using your buy box.

              3. -Connect with local agents, lenders, and property managers in those cities — their insight is gold.

              4. - At the end of 30 days, compare data + your gut. One market will likely feel more aligned.

              I’d be happy to share a simple deal analysis template or talk through how I vet markets if that helps, feel free to reach out!

              You’ve got a solid foundation already, and with a bit of focused action, you’ll be making offers before you know it.

              Best Regards, Laura Navaquin
              Investor | Mentor | BRRRR Strategy Educator

              2Reply
            • Jeff Roth
              Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 256 votes
              1y

              Hi Jackie from New York, New York.

              You are starting out in real estate investing and looking to invest out-of-state.

              Your investment criteria includes (1) Buy and hold property (2) Long term tenants (3) Single-family homes (4) Class B to A areas (5) Opportunity to add value (6) Cash flow as primary focus (7) Low risk of natural disaster and (8) Population growth and less than average crime.

              I like your criteria but would encourage you to consider starting with duplexes as you should always have a rent check coming in and Class C areas for better cash flow if that is your primary focus.

              Two areas I would encourage you to look is Lansing and Grand Rapids, MI.

              We have excellent property manager partners in both locations that handle all maintenance, keep tenants happy which reduces turnover, and work to add value to the property and rents.

              To Your Success!

              1Reply
            • Crystal SmithPro Member
              Moderator
              Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
              1y
              Quote from @Jackie Mcmorrow:

              Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

              Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

              What I’m looking for

              - Buy and hold property

              - Long term tenants (ideally vacant at purchase)

              - Single family home

              - Class B to A (likely B for more cash flow opportunity) neighborhood

              - Opportunity to add value so am more than open to rehab

              - Cash flow as primary focus

              - An area with comparatively low risk of natural disaster

              - Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

                Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

                - Cincinnati, oh

                - Columbus,oh (but seems like too hot a market?)

                - Dallas/ Fort Worth, tx

                - Charlotte, nc

                - Toledo, oh

                - San Antonio, tx

                - Minneapolis, mn

                With the exception of Toledo I've heard nothing but fairly positive things on the markets you have chosen.   

                312-681-7487
                0Reply
              • Bernice RetzloffPro Member
                Memphis, TN · Member since 2024 · 234 posts · 100 votes
                1y

                Hey @Jackie Mcmorrow!

                You're definitely not alone with that analysis paralysis, especially when you're trying to choose the “right” market to start in. It sounds like you’ve got a clear picture of what you’re looking for, and that’s a huge step in the right direction. Based on your goals, cash flow, long-term tenants, value-add potential, and landlord-friendly laws, you might want to take a look at Memphis. It doesn’t always get the hype, but it’s one of those markets where you can still find renovated single-family homes in the $100K–$150K range, in stable Class B areas with strong rental demand. Big employers like FedEx and St. Jude keep the job market solid, and the Ford Blue Oval project is adding even more momentum. Plus, with low property taxes and a strong network of local property managers, it’s very doable for out-of-state investors. Happy to share more if you’re curious! Just know you’re on the right track already!

                901-664-1949
                1Reply
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