Narrowing down strategy and locations for my first RE investment

[Alexander C.]

Hello BP-community, 

I am new to the world of REI and intend to make it one pillar of building my future wealth, intending to hopefully achieve Financial Independence in 10-15 years . Living in CA it appears that investing locally is not a viable option at this point in my life.
I am narrowing down on a SFH within a range of $250 - $300,000. My main objective right now is consistent growth and appreciation of the property, paying down the necessary mortgage and the expectation of an also consistently growing rent in the future. The only goal i have towards Cash Flow in the beginning, it should be Positiv, > $0! Being out of state, I am assuming a property management business is necessary.

Researching various states and their pro and cons for a landlord I'm inclined towards TX, AZ, MO and IN

Currently I am looking at the following areas:

- Indianapolis, IN

- St. Louis, MO 

- Kansas City, MO 

- Phoenix, AZ 

I am curious to connect with with experienced investors, who are open to share some of their knowledge as well as other newbies, who are in a similar situations, facing similar questions and decisions as me. Maybe someone who lives in one of these areas or successfully invests there? I am very grateful about any advice. Not sure how right my approach even is at this point?

In case there are some likeminded investors living in the SF Bay area, I am always happy to meet and chat over a coffee...

Thanks to everyone

Alex

[Melissa Justice]

@Alexander C.,

Welcome to the community! You're asking all the right questions and already thinking like a long-term investor, which is a huge first step. Your goal of positive cash flow AND long-term appreciation is a strong foundation, especially with a 10–15 year outlook toward financial independence.

Your market selections make a lot of sense - Indianapolis, Kansas City, and St. Louis are all popular among investors for their affordability, strong rent-to-price ratios, and relatively landlord-friendly laws. Phoenix has seen tremendous appreciation over the last decade, and while prices have climbed, certain pockets still offer opportunity, especially for long-term growth.

One thing to keep in mind: with your price range and goals, a solid property manager is going to be key. Out-of-state investing is 100% doable with the right team, especially in cities where investor infrastructure is already well-established.

Also, just for context - I’m based in the Phoenix area and have a background in real estate, so feel free to reach out or ask about the AZ market if it stays on your radar.

You're on the right track - connecting here and learning from others will help build the confidence to take that first step. Keep going!

Best of luck,

Melissa