Choosing a location to purchase my first rental

[Chaim Mal]

Hi all , my strategy is basically finding areas that are dense in population in a good neighborhood and have a demand for rentals and have cash flow. However I am unable to correctly identify ‘ research this and I am having analysis paralysis.

would you say to just find high cashflowing areas or should I just find an agent and trust his word. Like how can I ensure I am not just buying in some crappy area vs a good area with demand. I will be investing out of state so if I were to want to choose any state what would my first steps be ? 
any help would be appreciated to hopefully get my first rental by September 

[Melissa Justice]

@Chaim Mal,

Great question and you're definitely not alone! Analysis paralysis is one of the most common hurdles for new investors, especially when looking to invest out of state. You’re already thinking the right way: dense population, good neighborhoods, rental demand, and cash flow. Now it’s just about turning that into an action plan.

Here’s how to move from stuck to taking action---
Step 1: Choose Your Market Intentionally
Don’t rely solely on an agent’s word - your best protection is knowing how to spot a solid market yourself. Look for areas with:

Population growth
Job growth + economic diversity
Landlord-friendly laws
Median home prices that support cash flow (often under $250K)

Great starter markets include:
Indianapolis, IN
Birmingham, AL
Columbus, GA
Ocala or Citrus Springs, FL
Cleveland, OH

Step 2: Use Data to Validate Neighborhoods
Once you’ve chosen a market, go neighborhood by neighborhood using:

Rentometer.com – to verify rent demand
City-Data.com – for income levels, crime trends, owner vs renter mix
Local property managers – they’ll tell you what tenants want and where to avoid

Step 3: Find the Right Agent or Team
You definitely want a good investor-friendly agent, but don’t just take their word - instead, interview them like a business partner:

How many investor clients do you work with?
What areas are best for rentals and why?
Would you invest here?

Also ask to be introduced to a local PM - they’ll give you an honest take on rental demand, tenant quality, and what’s rentable.

You don’t need to find the “perfect” market to win - you need to take action in a good one with the right fundamentals. The goal is to buy a decent, cash-flowing property in a market you understand well enough to trust your decisions.

Happy to chat more about specific markets or help run your first deal analysis - you're closer than you think!

Best of luck,

Melissa