New to Real Estate and Looking for first property
Member since 2025 · 1 post · 10 votes
New to Real Estate and Looking for first property
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votesHey Thomas!
It’s awesome that you’re thinking about pooling funds with friends and expanding beyond your local market. It’s definitely a smart way to start building wealth through real estate, especially in a high-cost area like Boston.
My Toledo thoughts:
Toledo is an affordable market with strong rental demand due to its large population and stable economy. However, it can be a bit undervalued compared to other Midwest cities, which can make it tougher to achieve higher cash flow.
While Toledo is still a good option, if you're looking for stronger cash flow and better appreciation potential, I’d recommend expanding your search to nearby markets like Akron and Canton, OH.
Why They Stand Out --
Affordable property prices: You can find homes in these areas for around $130k–$150K, which offers great cash flow opportunities with lower upfront costs.
Solid rental demand: Both Akron and Canton have stable economies, with a good mix of university students, young professionals, and long-term tenants.
Steady appreciation: While these markets are more affordable, they’ve been seeing gradual appreciation with opportunities to add value through simple renovations and property management improvements.
Landlord-friendly: Ohio is known for being landlord-friendly, which can help minimize risk and headaches in case you need to evict tenants or manage difficult situations.
What About Buying Far From Home?
Buying a rental property out of state is common for investors, especially in high-cost areas like Boston.
Why it's not as risky as it may see --
Leverage Property Management: In Akron and Canton, you’ll find strong property management companies that can handle everything for you-so you’re not tied to the location.
Remote Investing is Normal: Many investors build successful portfolios in markets they don’t live in, relying on their teams on the ground to handle day-to-day operations. You’ll just need to vet your team carefully (agents, property managers, etc.).
Scalability: Investing in more affordable areas lets you scale quicker with better cash flow, allowing you to purchase more properties and build wealth faster.
Start with turnkey properties to minimize risk. Many areas like Akron and Canton have turnkey rental options that come fully renovated, tenant-occupied, and property-managed.
Focus on cash flow first-look for areas where rent-to-price ratios work out in your favor, like Akron and Canton, instead of just appreciating markets that might be out of your budget.
Leverage your team- this is crucial for out-of-state investing. Be sure to work with an investor-friendly agent, a reliable property manager, and a trustworthy contractor.
Look into Akron and Canton as a viable alternative to Toledo- they’re both stable, affordable, and have better cash flow potential.
Reach out to local real estate agents and property management companies in these markets to get a feel for the area and see available deals.
Vet turnkey property options - this can make your first investment less stressful and more predictable.
You’re on the right track, and with a little due diligence, you’ll be able to scale quickly and efficiently. Let me know if you’d like help looking into specific properties in Akron or Canton - always here to chat more.
Best of luck!
19 Replies
- 1yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
You should house hack and rent rooms to your friends. Some markets cash flow and some markets have more appreciation.
If you are in an appreciating market one of the best things you can do is buy and get as much of the mortgage paid by friends/tenants as possible.
That way you build equity and knowledge. Not sure about Toledo, but for a new investor, that is a long way away to pull off successful long distance investing.
Irish Jones Realty4.947 Reviews - 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votesHey Thomas, welcome to BP! It's tough to get started investing in the Boston market with how expensive homes are, and learning how to invest in a more affordable market can lead to better opportunities in the future in an area like Boston. Since you're considering Toledo for cash-flow I would also consider Dayton and Cleveland as well
Quote from @Thomas Grenier:
I'm looking to get involved in real estate for long term rentals. I graduated from Umass Amherst a few years ago and am trying to pool money with a few friends from college. I live in Boston Mass and have been looking at properties all around MA and nothing stands out to me. Home costs are high and seem to be fairly valued. A mortgage payment and other monthly costs would allow for minor monthly profit if any. I started looking into other markets and Toledo looks like a great area.
What are opinions on the Toledo rental market?
What are opinions on buying a first home nowhere near where you live?
Any other tips or market areas would be much appreciated.
Kerlous Tadres | Reafco Real Estate540 Reviews - 1yAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I would agree on the house hack provided you want to live there for a couple years and you're reducing your housing expenses overall. You wouldn't want to house hack if you're increasing your housing expenses or the property won't cash flow when you leave.
another thought too is that if you buy now and you're reducing housing expenses, rents will increase over time, so it may cash flow when you choose to not live there
Brick House CPAs53 Reviews - Memphis, TN · Member since 2024 · 180 posts · 223 votes1y
The exact reasons you mentioned above are the reasons why I work with a lot of our of state investors that are looking for opportunities in the market I serve, Memphis, TN. We have low entry points, very strong cash flow, and an ever-growing workforce that is constantly driving and growing the great tenant base we see here.
I can't speak for Toledo, but I do know that we see a lot of 1% rule opportunities here in Memphis, and good opportunities to BRRRR as well due to the cash flow and low-entry point. The landlord friendly laws here are the icing on the proverbial cake.
Best of luck as you get started! Happy to connect further.
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 453 votes1y
Thomas,
Great initiative pooling resources with trusted friends,smart way to get started.
Toledo offers solid cash flow potential thanks to low entry prices and decent rent-to-price ratios. Just make sure you understand the neighborhood-level dynamics there, some blocks do very well, others not so much. Connect with local property managers or investor-friendly agents to get a clearer picture.
Buying out-of-state as a first investment is doable, but it adds complexity. Without boots on the ground, property management is key, and you’ll need to build a strong local team. Also, you lose the advantage of learning firsthand, which can be valuable early on.
If cash flow is tight in MA, look at markets like Pittsburgh, Indianapolis, or parts of the Southeast. They're investor-friendly with stable rents and reasonable prices. But wherever you go, research thoroughly and run conservative numbers.
You’re asking the right questions, just pair the research with action when the numbers line up.
- Member since 2025 · 242 posts · 98 votes1y
@Thomas Grenier Out of state investing can work well if you build the right team agent, PM, contractor. Good luck with your first deal!
- 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/neighborhoods 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 Management4.9458 Reviews - 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
don't "pool money." don't start out of state. don't do gymnastics just to "do a deal."
as @Matthew Irish-Jones said, just save up enough until you can house hack. the goal with a house hack is not to "profit" on a monthly basis, it's to build wealth via ownership. if that takes a couple years, so be it. if it's difficult, it means lots of others won't do it.
form a mastermind with your friends. see who can save up the most the fastest and get their own house hack first. house hack separately, and discuss your house hacks. become house hacking experts. teach others to house hack. house hack sequentially until you own multiple trophy properties in Boston.
buying a random OOS property with all your capital in a market you don't know is just going to set you back.
hope this helps.
- 1yRyan RomingerBusiness MemberReal Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
Hi Thomas, Welcome to BP!
Intrigue Real Estate & Property Management4.6285 Reviews - Investor · Member since 2022 · 15 posts · 15 votes1y
Quote from @Thomas Grenier:
I'm looking to get involved in real estate for long term rentals. I graduated from Umass Amherst a few years ago and am trying to pool money with a few friends from college. I live in Boston Mass and have been looking at properties all around MA and nothing stands out to me. Home costs are high and seem to be fairly valued. A mortgage payment and other monthly costs would allow for minor monthly profit if any. I started looking into other markets and Toledo looks like a great area.
What are opinions on the Toledo rental market?
What are opinions on buying a first home nowhere near where you live?
Any other tips or market areas would be much appreciated.
Hey Thomas! I have small but growing portfolio of 4 properties in Toledo, OH since I started my out-of-state investing journey in 2022. Toledo is great because it is experiencing a resurgence in its downtown corridor and has steady jobs in diverse industries (close proximity to Toledo Unersity, auto and medical manufacturing). Plus it has a lower entrance in terms of price...you can easily find properties on the MLS between $100-$120k that will rent between $1200-$1400 monthly. Essentially you can cashflow Day 1.
With that said, there are some cons. Toledo has some rougher neighborhoods so do your due diligence in buying those so-called "cheap" properties sub $60k. They might cashlow on a spreadsheet but you'll have higher turnover and those vacancies and repair costs will easily eat away any cashflow. You'll need a rock solid boots-on-the-ground team to make it work in those rougher neighborhoods. The other thing to note is that historically Toledo is a cashflow market. It has experienced some nice appreciation in recent years (but so has most affordable Midwest markets). 1-2 properties are not going to make you wealthy. You'll need a portfolio of a few solid properties (maybe 4-6) to weather the storm on any downturns you have on any 1-2 properties at any given time.
Overall, I am happy with my experience in Toledo and so far its a market that works well with my investment goals. Feel free to reach out if you have additional questions.
- 1yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
Congrats on taking the leap, Thomas! Buying out-of-state can definitely work if you’ve got a solid team in place. I know a good PM I can recommend if you’re looking.
That market still offers affordable entry points and decent cash flow. You can find 3-bed SFHs under $100K that meet the 1% rule, which is getting rare these days.
If you ever want to talk strategy or walk through the process, always happy to connect!
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Thomas Grenier:
I'm looking to get involved in real estate for long term rentals. I graduated from Umass Amherst a few years ago and am trying to pool money with a few friends from college. I live in Boston Mass and have been looking at properties all around MA and nothing stands out to me. Home costs are high and seem to be fairly valued. A mortgage payment and other monthly costs would allow for minor monthly profit if any. I started looking into other markets and Toledo looks like a great area.
What are opinions on the Toledo rental market?
What are opinions on buying a first home nowhere near where you live?
Any other tips or market areas would be much appreciated.
Welcome to BP, Thomas! Totally hear you on Boston and most of Massachusetts being tough for cash flow—it’s a common challenge for investors in higher-cost markets. Pooling funds with friends is a great move though and gives you more flexibility to look out of state. Toledo has come up more often lately for affordability, but just make sure you're digging into the neighborhood-level data. Like many Midwest cities, it's super block-by-block, and while you might find low price points, you'll want to be extra careful about tenant quality, vacancy rates, and appreciation potential.
That said, if you’re looking for a strong out-of-state rental market, I’d really encourage you to check out Columbus, Ohio. I moved here from Portland in 2020 and now own 10+ rentals, and it’s been a great balance of affordability, cash flow, and long-term growth. The job and population growth here is insane—Intel’s $26B chip plant is being built here, and companies like Amazon, Google, Facebook, Honda, LG, and Microsoft all have a major presence. Even with all that, prices are still super reasonable—you can find solid single-family homes and small multis in the $120–180K range that hit the 1% rule and cash flow right away. It’s also landlord-friendly, which is huge when managing from out of state. Buying your first rental in a different state can definitely feel intimidating, but with the right local team—agent, PM, contractor—it’s 100% doable. Tons of investors on here have done the same, especially starting in the Midwest. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Investor · Indianapolis, IN · Member since 2015 · 270 posts · 217 votes1y
Quote from @Thomas Grenier:
I'm looking to get involved in real estate for long term rentals. I graduated from Umass Amherst a few years ago and am trying to pool money with a few friends from college. I live in Boston Mass and have been looking at properties all around MA and nothing stands out to me. Home costs are high and seem to be fairly valued. A mortgage payment and other monthly costs would allow for minor monthly profit if any. I started looking into other markets and Toledo looks like a great area.
What are opinions on the Toledo rental market?
What are opinions on buying a first home nowhere near where you live?
Any other tips or market areas would be much appreciated.
no - Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes1y
I am house hacking in Beverly MA, just north of the city. You're right, the prices are tough but I'm so happy I didn't go OOS when I started. It actually costs more than you think. You get stuck paying people way to much to do little tasks that you could of done. You have no eyes on it. I highly suggest going local first. Build that confidence then you can build out the Oos portfolio if you want to. Not to mention to is yes cash flow will be minimal if any here but it is a strong appreciation move. I've never met a single investor in MA that regretted buying here.
- 1yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Thomas Grenier:
I'm looking to get involved in real estate for long term rentals. I graduated from Umass Amherst a few years ago and am trying to pool money with a few friends from college. I live in Boston Mass and have been looking at properties all around MA and nothing stands out to me. Home costs are high and seem to be fairly valued. A mortgage payment and other monthly costs would allow for minor monthly profit if any. I started looking into other markets and Toledo looks like a great area.
What are opinions on the Toledo rental market?
What are opinions on buying a first home nowhere near where you live?
Any other tips or market areas would be much appreciated.
Toledo is a good rental market for cash flow. Never visit that city tho. Last time I was there the Athletic club asked me not to come back
- 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hi @Thomas Grenier!
Love the initiative, especially teaming up with friends to get your foot in the door. That kind of creative approach is key in a high-priced market like Massachusetts.
Toledo has definitely caught more attention lately for its affordability and rental demand. It offers strong cash-on-cash potential, but like many lower-cost markets, you’ll want to be careful about neighborhood selection, tenant quality, and having a reliable local team (especially for property management and maintenance). Cash flow is great, but only if it’s stable cash flow.
As someone who works with out-of-state investors in Memphis, TN, I’ll also throw it in the mix for your consideration. Memphis has:
-
Investor-friendly pricing (often under $150K for rentals)
-
Strong rent-to-price ratios
-
A healthy tenant pool
-
Landlord-friendly laws
-
A large network of investor agents, PMs, and rehab crews
Buying out of state can feel intimidating at first, but if you build the right team and do your due diligence, it can absolutely work. Plenty of investors I’ve worked with have started their portfolio remotely. It just takes a bit more front-end prep and a focus on relationships.
If you want to explore what that process looks like (vetting a market, finding the right boots on the ground, etc.), happy to share insights from the Memphis side. No pressure! Just here to help however I can!
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- Attorney · RI · Member since 2019 · 157 posts · 93 votes1y
I am an attorney licensed in RI, MA, CT, and FL. We have two multifamilies in Rhode Island that cash flow really well. I'm not a huge fan of investing in markets that I'm not super familiar with. If I were you, I'd look into RI or CT. Lower housing prices and rents are still strong. Plus you aren't far away if anything goes wrong with a property. Happy to connect you with some people if you're interested!
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Hey Thomas!
It’s awesome that you’re thinking about pooling funds with friends and expanding beyond your local market. It’s definitely a smart way to start building wealth through real estate, especially in a high-cost area like Boston.
My Toledo thoughts:
Toledo is an affordable market with strong rental demand due to its large population and stable economy. However, it can be a bit undervalued compared to other Midwest cities, which can make it tougher to achieve higher cash flow.
While Toledo is still a good option, if you're looking for stronger cash flow and better appreciation potential, I’d recommend expanding your search to nearby markets like Akron and Canton, OH.Why They Stand Out --
Affordable property prices: You can find homes in these areas for around $130k–$150K, which offers great cash flow opportunities with lower upfront costs.
Solid rental demand: Both Akron and Canton have stable economies, with a good mix of university students, young professionals, and long-term tenants.
Steady appreciation: While these markets are more affordable, they’ve been seeing gradual appreciation with opportunities to add value through simple renovations and property management improvements.
Landlord-friendly: Ohio is known for being landlord-friendly, which can help minimize risk and headaches in case you need to evict tenants or manage difficult situations.
What About Buying Far From Home?
Buying a rental property out of state is common for investors, especially in high-cost areas like Boston.Why it's not as risky as it may see --
Leverage Property Management: In Akron and Canton, you’ll find strong property management companies that can handle everything for you-so you’re not tied to the location.
Remote Investing is Normal: Many investors build successful portfolios in markets they don’t live in, relying on their teams on the ground to handle day-to-day operations. You’ll just need to vet your team carefully (agents, property managers, etc.).
Scalability: Investing in more affordable areas lets you scale quicker with better cash flow, allowing you to purchase more properties and build wealth faster.
Start with turnkey properties to minimize risk. Many areas like Akron and Canton have turnkey rental options that come fully renovated, tenant-occupied, and property-managed.
Focus on cash flow first-look for areas where rent-to-price ratios work out in your favor, like Akron and Canton, instead of just appreciating markets that might be out of your budget.
Leverage your team- this is crucial for out-of-state investing. Be sure to work with an investor-friendly agent, a reliable property manager, and a trustworthy contractor.
Look into Akron and Canton as a viable alternative to Toledo- they’re both stable, affordable, and have better cash flow potential.
Reach out to local real estate agents and property management companies in these markets to get a feel for the area and see available deals.
Vet turnkey property options - this can make your first investment less stressful and more predictable.
You’re on the right track, and with a little due diligence, you’ll be able to scale quickly and efficiently. Let me know if you’d like help looking into specific properties in Akron or Canton - always here to chat more.Best of luck!
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