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

Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes

1y

Hey @Jackie Mcmorrow — welcome to the journey! I totally get what you’re feeling with analysis paralysis; I’ve seen it plenty over the years, and you’re definitely not alone. It’s great that you’re taking the time to be intentional, but also awesome that you’re ready to start making moves.

I’m a Memphian and have been helping out-of-state investors for about 20 years now, and I genuinely think Memphis deserves a strong look for what you're trying to do. It checks so many of your boxes — solid cash-flowing properties, landlord-friendly laws, low property taxes, and a large tenant base that really supports buy-and-hold investing. There’s also a steady job market here, anchored by major logistics and distribution hubs (FedEx being the biggest name, but far from the only player), healthcare, and manufacturing. Population growth isn’t rapid, but it’s stable — which in my experience is great for long-term tenants and consistent returns.

There’s also still opportunity here to find single-family homes in B-class neighborhoods that need a little love but have great bones. That value-add angle you mentioned is very much alive in Memphis. And because I'm on the ground here, I can help you get clear, honest insights into neighborhoods, rehab costs, rent potential — all that stuff that’s harder to figure out from out of state.

If you want to chat more or dig into actual numbers on Memphis deals, just let me know. I’m happy to help however I can.

1 Reply

Kyle MccawBusiness Member

Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes

1y

@Jackie Mcmorrow

- great list and even better mindset. You're not wasting time at all. This stage of "analysis paralysis" is part of the journey for most serious investors, especially those investing out-of-state. You’re asking the right questions.

A few points from someone who's managed a significant number of long-term single-family rentals:

There’s no perfect market. But there are systems and teams that can make almost any solid market work. I’ve seen investors succeed in areas that didn’t check every box — but they had the right local partners, contractors, and leasing strategy.
DFW is worth a deep look. Cities like Fort Worth, Arlington, and parts of Denton County offer Class B neighborhoods with growing demand, rehab opportunities, and stable job markets (healthcare, logistics, aerospace, and education — think TCU, Lockheed, and Alliance Airport). Property taxes are higher here than the Midwest, but Texas has no state income tax and strong landlord protections under the Texas Property Code.
Vacant + value-add + cash flow = success formula — but make sure your numbers account for holding time during rehab, realistic rent rates (not Zillow guesses), insurance (especially if you’re using older roofs or plumbing), and professional management if you’re not local.
Lean on professionals. Out-of-state investing is a team sport. I always recommend investors get connected with local property managers, mortgage brokers who understand rental investing (like @Andrew Postell), and insurance agents like Cameron Moore at ProCo who structure policies that protect your ROI.

Keep going. Don’t let fear of picking the wrong market hold you back from making the right moves. Most of us struggled early on, but with time and discipline, this business becomes incredibly rewarding.

And if you haven’t yet, listen to the podcast How Real Estate Changed My Life — it’s full of stories from regular folks who made this journey work. You’re on the right track.

McCaw Property Management4.4907 Reviews

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2 Reply

Jackie Mcmorrow
OP
New to Real Estate · Westchester, NY · Member since 2023 · 13 posts · 13 votes
1y
Quote from @Kyle Mccaw:
@Jackie Mcmorrow
- great list and even better mindset. You're not wasting time at all. This stage of "analysis paralysis" is part of the journey for most serious investors, especially those investing out-of-state. You’re asking the right questions.

A few points from someone who's managed a significant number of long-term single-family rentals:

There’s no perfect market. But there are systems and teams that can make almost any solid market work. I’ve seen investors succeed in areas that didn’t check every box — but they had the right local partners, contractors, and leasing strategy.

DFW is worth a deep look. Cities like Fort Worth, Arlington, and parts of Denton County offer Class B neighborhoods with growing demand, rehab opportunities, and stable job markets (healthcare, logistics, aerospace, and education — think TCU, Lockheed, and Alliance Airport). Property taxes are higher here than the Midwest, but Texas has no state income tax and strong landlord protections under the Texas Property Code.

Vacant + value-add + cash flow = success formula — but make sure your numbers account for holding time during rehab, realistic rent rates (not Zillow guesses), insurance (especially if you’re using older roofs or plumbing), and professional management if you’re not local.

Lean on professionals. Out-of-state investing is a team sport. I always recommend investors get connected with local property managers, mortgage brokers who understand rental investing (like @Andrew Postell), and insurance agents like Cameron Moore at ProCo who structure policies that protect your ROI.

Keep going. Don’t let fear of picking the wrong market hold you back from making the right moves. Most of us struggled early on, but with time and discipline, this business becomes incredibly rewarding.

And if you haven’t yet, listen to the podcast How Real Estate Changed My Life — it’s full of stories from regular folks who made this journey work. You’re on the right track.
Thank you, Kyle! These are great tips and very encouraging. If I choose to pursue DFW, I'd love to chat some more
2 Reply

Eric FernwoodBusiness Member

Realtor · Las Vegas, NV · Member since 2014 · 996 posts · 1k+ votes

1y

Hello @Jackie Mcmorrow,

You did a great job on the criteria you specified. The city you choose to invest in IS your most important investment decision. The city defines whether you can maintain lifelong financial independence. Below are some considerations (not in any order).

Landlord-Friendly Laws

Never invest in any cities or states with rent control or restrictive rental regulations. These can make selecting performing tenants, evictions, and rent increases nearly impossible, jeopardizing your ability to maintain profitability.

Lifelong Income

Initial cash flow only predicts initial return under ideal conditions. Financial independence requires rent growth and appreciation that outpaces inflation. Growing markets with higher property prices may offer lower initial cash flow, but their rent growth typically outpaces inflation, enabling lifelong financial independence.

Jobs

An investment property is no better than the jobs your tenants have. For your income to last a lifetime, your tenants must remain employed at similar wages. Since companies have limited lifespans, only invest in cities that attract new businesses that will create the replacement jobs. Look for cities with:

Low crime rates
Metro populations over 1 million (for infrastructure and skilled workers)
Low operating costs.
Business-friendly regulations

Tenant-First Approach

No property pays rent—tenants do. To have a reliable income, you must have reliable people in your property. A reliable person stays for many years, pays rent on schedule, and takes good care of the property. These people are the exception, not the norm. Work with property managers to identify properties that attract reliable tenants. Then, buy properties similar to what they rent today. Selecting a property first and hoping for good tenants is a risky approach.

Renovation Considerations

Study comparable properties that rent quickly at full market value and make only the necessary changes. Your personal preferences don’t matter—focus solely on upgrades that increase rent or reduce vacancy time.

Summary

By focusing on these criteria, you’ll build a portfolio that supports lifelong financial independence.

[email protected]702-358-8884

FERNWOOD Team, KW VIP Realty520 Reviews

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1 Reply

Jackie Mcmorrow
OP
New to Real Estate · Westchester, NY · Member since 2023 · 13 posts · 13 votes
1y
Quote from @Eric Fernwood:
Hello @Jackie Mcmorrow,
You did a great job on the criteria you specified. The city you choose to invest in IS your most important investment decision. The city defines whether you can maintain lifelong financial independence. Below are some considerations (not in any order).

Landlord-Friendly Laws

Never invest in any cities or states with rent control or restrictive rental regulations. These can make selecting performing tenants, evictions, and rent increases nearly impossible, jeopardizing your ability to maintain profitability.

Lifelong Income

Initial cash flow only predicts initial return under ideal conditions. Financial independence requires rent growth and appreciation that outpaces inflation. Growing markets with higher property prices may offer lower initial cash flow, but their rent growth typically outpaces inflation, enabling lifelong financial independence.

Jobs

An investment property is no better than the jobs your tenants have. For your income to last a lifetime, your tenants must remain employed at similar wages. Since companies have limited lifespans, only invest in cities that attract new businesses that will create the replacement jobs. Look for cities with:

Low crime rates

Metro populations over 1 million (for infrastructure and skilled workers)

Low operating costs.

Business-friendly regulations

Tenant-First Approach

No property pays rent—tenants do. To have a reliable income, you must have reliable people in your property. A reliable person stays for many years, pays rent on schedule, and takes good care of the property. These people are the exception, not the norm. Work with property managers to identify properties that attract reliable tenants. Then, buy properties similar to what they rent today. Selecting a property first and hoping for good tenants is a risky approach.

Renovation Considerations

Study comparable properties that rent quickly at full market value and make only the necessary changes. Your personal preferences don’t matter—focus solely on upgrades that increase rent or reduce vacancy time.

Summary

By focusing on these criteria, you’ll build a portfolio that supports lifelong financial independence.
Thank you, Eric! There is a lot of wisdom in this response. Really appreciate it, especially your comments on lifelong income.
0 Reply

Jackie Mcmorrow

OP

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

1y

Thanks for this, Shawn! I have been led to believe any investing in the Tri-State is a bad idea and the numbers are hard to make work, especially near Manhattan. I'd love to connect more on this and explore the idea

0 Reply

Austin Fowler

Investor · Reseda, CA · Member since 2019 · 297 posts · 150 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,

My focus is on out-of-state investing. I'm in CA and currently hold assets in AL, AR, CA, FL, GA, IL, IN, MA, MO, MS, OH, OK, PA, TN, TX, WA. Happy to share my experience. Message me if you would like to chat. Same goes for anyone else interested in building a robust out-of-state portfolio. I have 32 single-family long-term rentals, a stake in over 2200 units of multifamily, and currently have 7 flips on the go.

Best,
Austin.

0 Reply

Jackie Mcmorrow
OP
New to Real Estate · Westchester, NY · Member since 2023 · 13 posts · 13 votes
1y
Quote from @Austin Fowler:
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,

My focus is on out-of-state investing. I'm in CA and currently hold assets in AL, AR, CA, FL, GA, IL, IN, MA, MO, MS, OH, OK, PA, TN, TX, WA. Happy to share my experience. Message me if you would like to chat. Same goes for anyone else interested in building a robust out-of-state portfolio. I have 32 single-family long-term rentals, a stake in over 2200 units of multifamily, and currently have 7 flips on the go.

Best,
Austin.
Thanks, Austin! I’d really appreciate that
1 Reply

Keegan Mraz

Member since 2025 · 11 posts · 9 votes

1y

Hi Jackie! What books and podcasts are you listening to? New and Learning here as well, thanks!

0 Reply

Steven WesolowskiPro Member

Realtor · San Antonio, TX · Member since 2023 · 276 posts · 42 votes

1y

Greetings Jackie! Glad to see you listed San Antonio, TX, as one of your recent to-do list

I helped several investors from all over the United States looking into San Antonio, even investors from overseas looking for their rental play expansion in Texas --our market has quite an abundance! Renters are an all-time high here.

You're on the right track considering Texas because of its landlord-friendly laws. San Antonio aligns very well for your buy-and-hold strategy focused on cash flow and value-add opportunities.

The city consistently sees strong growth --demand for rents is a constant because of military service members, college and medical students, etc. --the writing is on the wall! Rental vacancy rate is slightly higher than the national average, but it's tightening up!

You will find plenty of Class B that provide solid cash flow, worth elevating towards Class A through strategic renovations. Many established communities are appealing to long-term renters, especially rent-to-own buyers here.

Your rehab potential is knocking on your door right now. I've got an inventory of older, well-built homes ready for value-add. I am seeing a trend where renovated older homes in desirable areas, priced in the high-$200s or low-$300s, are selling faster and attracting more attention than new builds in the $400s further out. You are going to create the more ideal home for a buyer who might not qualify for brand new construction, but is eager for modern luxury vibes and functionality.

Many investors I've worked with, including experienced flippers from markets like LA, are drawn to us due to favorable numbers. You can find off-market deals in the low-$100s for homes that, with a $60k-ish rehab, will achieve ARVs in the high-$200s easily.

My best advice is to look beyond the "perfect" market and just consider the "perfect" project. I literally have overlooked pockets just minutes from downtown that are non-HOA, making them highly appealing to tenants seeking convenience and affordability over having to spend 40+ mins in daylight traffic.

Every market has its risks, but the real key is to understand your numbers and embrace the opportunity to create value. Set on just changing the property into an income-producing asset or one that sets the market for its area, and trust me, the rest of the city will follow.

Happy to share with you more specific neighborhoods and actual case studies from several investor buyers of my own. Always ready to align with your vision. Let me know if you have any questions!

0 Reply

Marc RiceBusiness Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 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

Based on your criteria, I think Columbus is still your best bet. Get a good team of a contractor, PM, Realtor and a lender and you are good to go. I can share my go-to contacts. Happy to help

[email protected]614-363-2787

Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews

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

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

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