Starting out- Looking Out of State
Steven SchusterPro Member
San Diego, CA · Member since 2014 · 29 posts · 16 votesStarting out- Looking Out of State
Most Popular Reply
Adrian Lammersdorf-SciollBusiness Member
Realtor · FL · Member since 2020 · 234 posts · 101 votesI know a few people personally that have had some great success in Ohio in cities like Cleveland. I've also heard of good success in Indiana, but don't know anyone that is currently investing there. The midwest is probably going to be your best bet. If not that then house hack is always a great option. You'd be suprised how little down you can put on a primary duplex, and then you can even make the other side an Air Bnb and slash your cost of living by a bunch. I know that Cali is starting to do ADU's on single family homes. Definitely look into that. Your start up costs would probably be about same or less.
Thomas Lynne Realty528 Reviews
36 Replies
- New to Real Estate · Redondo Beach, CA · Member since 2022 · 7 posts · 5 votes9mo
No advice, I just align closely with your situation. SoCal is so tough. Do you know of meet ups in the area? I’m in the Redondo area. Good luck and happy hunting!
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9moOh nice! I wholesaled a while ago and acquired a property in redondo. Super nice area. Unfortunately, I haven’t found any groups or meetups around here yet. But would love to go if i can find one
Quote from @Evan Shults:
No advice, I just align closely with your situation. SoCal is so tough. Do you know of meet ups in the area? I’m in the Redondo area. Good luck and happy hunting!
- Member since 2025 · 12 posts · 12 votes9mo
@Evan Shults Hi Evan, I'm in Torrance and looking to get started remotely like@Steven Schuster. Where did each of you end up deciding to invest? I'm currently looking at San Antonio.
- 9moG. Brian DavisPro MemberInvestor · Hatboro, PA · Member since 2016 · 3k+ posts · 881 votes
Hi @Steven Schuster, Start working on building a strong local team (agent, contractor, property manager) before you buy. For wholesalers, start by joining local Facebook investor groups, BiggerPockets subforums for that market, and local REI meetups most active wholesalers show up in those spaces. BRRRR is doable as a first deal, just keep the scope simple, conservatively underwrite, and prioritize execution over perfection.
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9mo
@G. Brian Davis wow very helpful thank you!
- 9moSamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey Steven, you can find wholesalers on sites like InvestorLift or Facebook. You can also connect with some wholesalers here on BiggerPockets.
If you're interested in looking at other markets in the Midwest, I'd definitely recommend checking out Ohio! A ton of investors based out of Cali are having great success here. I personally moved to Ohio from Florida for the growing markets here.
Reafco - Samuel Diouf4.929 Reviews - Memphis, TN · Member since 2024 · 180 posts · 223 votes9moHey! I work with a lot of investors in the same boat as yourself-wanting to gets tarted with their first rental but facing the struggle of Cal prices. Happy to take some time to discuss our investment market in Memphis, TN and the team we can helps set you up with to get started.
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
Talk soon/best of luck! - 9moDale Robert MasonPro MemberInvestor · Member since 2022 · 10 posts · 11 votes
Hello Steven:
Your team will be everything! It may take you a period of time to get all the pieces right so if you can build a learning curve into your financials, that would be smart. I am 2 years into investing with 3 deals under my belt. The first one was pretty rough because I didn't know so much but I quickly learned. My toughest lessons stemmed from not having the right team, underestimating costs and therefore my budget, and not knowing the market. Deals 2 & 3 are much better for me but the learning curve was steep and costly.
Your ability to be successful with a BRRR strategy will also depend on gaining market pricing knowledge and renovation costs. I think it's smart to start in a market you have some familiarity with. I also started investing out of state in my hometown.
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9mo
@Dale Robert Mason thanks for the reply! Actually very helpful and motivating
- 9moAdrian Lammersdorf-SciollBusiness MemberRealtor · FL · Member since 2020 · 234 posts · 101 votes
I know a few people personally that have had some great success in Ohio in cities like Cleveland. I've also heard of good success in Indiana, but don't know anyone that is currently investing there. The midwest is probably going to be your best bet. If not that then house hack is always a great option. You'd be suprised how little down you can put on a primary duplex, and then you can even make the other side an Air Bnb and slash your cost of living by a bunch. I know that Cali is starting to do ADU's on single family homes. Definitely look into that. Your start up costs would probably be about same or less.
Thomas Lynne Realty528 Reviews - 9moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
You typically want to choose a market in the midwest because soCal is very expensive. Your money will go a lot further in the midwest. Find a good agent that can send you off-market deals, good general contractors, hard-money lenders for purchase and dscr lenders for refi, and a good pm that can manage and lease for you.
Buy your deals at 75% ARV dont go over MOA (Max Allowable offer). Check the age of mechanicals like age of roof, hvac, hot water, electrical, sewer line check, plumbing, etc.
Let me know if you need guidance.
ReafCo | Ahmed Group 533 Reviews - New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 474 votes9mo
Steven, looking out of state is a smart move given SoCal prices, and going back to Central Illinois where you have connections is a big plus. BRRRR can work for first-timers, but only if you've got a reliable local team: contractor, agent, and property manager especially. The risk with BRRRR is in the rehab and refinance steps, which are harder to control remotely.
To find wholesalers, start by joining local Facebook groups, BiggerPockets threads, or real estate meetups in your target city. Let people know you're looking , deals often come through word of mouth.
Keep it conservative on your first one. Run the numbers tightly, and only move forward if the cash flow holds up after a full refinance.
Reach out if you want help stress-testing a deal.
Drago
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9mo
@Drago Stanimirovic thanks Drago, i might do that!
- Member since 2025 · 104 posts · 37 votes9mo
A good PM Company and a Realtor that is also an Investor is worth it's weight in Gold. #OKC
- 9moMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Here's some copy & paste advice you might find useful:
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 will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually 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!
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
Logical Property Management4.9460 Reviews - Property Manager · Memphis, TN · Member since 2020 · 80 posts · 32 votes9mo
You’re thinking about the right things early, which is a good sign.
Out-of-state investing can work well, but the team matters more than the deal. Since you won’t be local, having strong boots on the ground is critical (an investor-friendly agent, a reliable contractor, and a solid property manager). Start building those relationships before you buy.
BRRRR can be a reasonable first strategy if you're conservative with your numbers. First-timers often underestimate rehab costs and timelines, especially from afar, so extra margin and realistic assumptions are key.
If SoCal doesn’t pencil, that’s very common. Central Illinois makes sense if you still have connections there. Another market worth researching is Memphis, TN. It attracts a lot of out-of-state investors due to lower entry prices, strong rent-to-price ratios, and a large renter base supported by logistics and healthcare jobs. As with any market, neighborhood selection is crucial.
To find wholesalers, look beyond just asking for names. Join local BiggerPockets forums, attend REI meetups (virtual or in person), and ask agents or property managers who they consistently see bringing deals. Don't rely on a single source.
Overall, focus on understanding one market well, building trust locally, and underwriting conservatively. That matters more than chasing the “perfect” deal.
Good luck! - 9moBen FernandezBusiness MemberRealtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
A realtor who has managed/overseen renovations and has referrals is a great starting point.
They can help you find the deal, provide feedback on top potential value, add value to getting you acquainted with essential team members/contractors and can be held accountable (within the parameters of the role you hire them for).
Short answer is yes - as (or if) you can form a team of role players. Next step is to make sure the numbers make sense.
There are some good prices in that area. You just need to make sure you reach the value needed for the refinance and that rent rates are reliable and reasonable for stabilization.
There appears to be growth there as well. So I think you could be in a decent pocket. Just be sure to know your metrics and review if the location is inclining, declining or flat based upon population trends, median income trends, crime trends and employment trends.
When I look at areas like where you’re referring to, my mind goes to ground up development. Simply due to the cost of land in an area like that, and it’s showing growth. We don’t need to consider demand. Because that’s a given (for the most part) due to the lack of inventory. However, you’d still need to pick the right spots.
Join some investors based Facebook groups for that area and also call some reputable brokerages to describe what you’re looking for and see what directives you get.
Interview, interview, interview…
Good luck! You’ll be fine!
Just think, people who don’t even live in the country do it. So you can do it. Just cross your T’s and dot your I’s
Yeah SoCal pricing is brutal for BRRRR, smart to look where your dollars stretch further. Illinois can work great if you've got local connections for boots on the ground stuff. The tricky part isn't finding wholesalers, it's finding good ones who actually send quality deals vs just mass blasting garbage to every investor list. Are you planning to self-manage the rehab remotely or have a reliable contractor network lined up already?
- 9moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 961 votes
For first-time out-of-state investing, the biggest risk isn't the strategy, it's execution. BRRRR can work for a beginner, but only if you simplify it: conservative ARV assumptions, light-to-moderate rehab, and strong rental demand. The key is building a local team before chasing deals—an investor-friendly agent, contractor, lender, and property manager who already work together. For finding wholesalers, local investor meetups, Facebook groups, and referrals from active agents tend to beat cold outreach. Start slow, focus on one market you understand, and treat the first deal as a foundation, not a home run.
- Inland Empire, CA · Member since 2017 · 151 posts · 79 votes9mo
Hey Steven, I'm based out of SoCal as well. My partners and I invest in larger multifamily out of state. Happy to connect
- 9moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
I'd recommend buying where your money stretches further, and you already have trusted local connections; BRRRR can work as a first deal if it cash flows even with a conservative refi and the rehab is simple. To find a wholesaler, join local investor groups and ask a couple of property managers and contractors who the active wholesalers are.
Kerlous Tadres | Reafco Real Estate541 Reviews - 9moMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 502 posts · 553 votes
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
Hey @Steven Schuster glad to see you're getting started and welcome to BP.
BRRRR is a great strategy but as a first timer, I wouldn't recommend it right out of the gates. It's a pretty advanced strategy that is pretty hard to pull off as an OOS investor with no relationships in the market you're looking to select. I'd recommend going light cosmetic / turnkey for your first one to get your feet wet and then maybe progress to a BRRRR on your 3rd or 4th deal. By then you should have some contractors, property managers, ect who you have a relationship with and can act quickly with more confidence.
Investing is a long term thing...not a sprint. Good luck on your investing. Happy to chat further and share some of my own personal OOS investing experiences from when I got started.
Reafco - Mike Paolucci 512 Reviews - Real Estate Broker · Indianapolis, IN · Member since 2026 · 21 posts · 11 votes9mo
Hi Steven,
Out of state can work fine and Central Illinois is way more forgiving for a first deal than SoCal prices. BRRRR is doable as a newbie but only if the buy is conservative and the rehab is simple, otherwise it gets overwhelming fast from a distance. Quick gut check I like is target rent minus PITI minus 10 percent management minus 10 percent maintenance still needs to be positive with some buffer, and you want all in around 65 to 70 percent of ARV if you expect a clean refi. Your biggest risk is not the market, it's the team, so lean hard on your local connections for a property manager and boots on the ground before you chase wholesalers. Wholesalers are easy to find once you're local enough, but a solid PM will save you way more money than a "deal."
What price range and rent range are you seeing in Central Illinois and are you planning to self manage or hire management from day one?
Indianapolis Is a great market for out-of-state investors as well!
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9mo
Quote from @Brooke Newport:
Hi Steven,
Out of state can work fine and Central Illinois is way more forgiving for a first deal than SoCal prices. BRRRR is doable as a newbie but only if the buy is conservative and the rehab is simple, otherwise it gets overwhelming fast from a distance. Quick gut check I like is target rent minus PITI minus 10 percent management minus 10 percent maintenance still needs to be positive with some buffer, and you want all in around 65 to 70 percent of ARV if you expect a clean refi. Your biggest risk is not the market, it's the team, so lean hard on your local connections for a property manager and boots on the ground before you chase wholesalers. Wholesalers are easy to find once you're local enough, but a solid PM will save you way more money than a "deal."
What price range and rent range are you seeing in Central Illinois and are you planning to self manage or hire management from day one?
Indianapolis Is a great market for out-of-state investors as well!
I actually already have half equity interest in a 2/2 condo. It was inherited by my mom and I. It rents for $1,650/ mo. We have a property manager for that place, and they've been doing reasonably well for the first year. Although, the place was inherited and fully paid off; so I haven't scrutinized the numbers like I should as an investor.
- Real Estate Broker · Indianapolis, IN · Member since 2026 · 21 posts · 11 votes9mo
Quote from @Steven Schuster:
Quote from @Brooke Newport:
Hi Steven,
Out of state can work fine and Central Illinois is way more forgiving for a first deal than SoCal prices. BRRRR is doable as a newbie but only if the buy is conservative and the rehab is simple, otherwise it gets overwhelming fast from a distance. Quick gut check I like is target rent minus PITI minus 10 percent management minus 10 percent maintenance still needs to be positive with some buffer, and you want all in around 65 to 70 percent of ARV if you expect a clean refi. Your biggest risk is not the market, it's the team, so lean hard on your local connections for a property manager and boots on the ground before you chase wholesalers. Wholesalers are easy to find once you're local enough, but a solid PM will save you way more money than a "deal."
What price range and rent range are you seeing in Central Illinois and are you planning to self manage or hire management from day one?
Indianapolis Is a great market for out-of-state investors as well!
I actually already have half equity interest in a 2/2 condo. It was inherited by my mom and I. It rents for $1,650/ mo. We have a property manager for that place, and they've been doing reasonably well for the first year. Although, the place was inherited and fully paid off; so I haven't scrutinized the numbers like I should as an investor.
- San Diego, CA · Member since 2014 · 29 posts · 16 votes9mo
So many great and helpful responses since my last check in. Thank you all for your insight and advice, it's all very helpful and motivating! I will work on getting a team in place and ducks in a row. For now, get lots of reps in on analyzing deals :)
- Real Estate Broker · Indianapolis, IN · Member since 2026 · 21 posts · 11 votes9mo
That condo is a great starting point even though you didn't buy it, because it lets you think like an investor without the risk. At 1650 rent, back out management, maintenance, taxes, insurance, and see what the true net is, then divide that by your share of the property value to get a real return. If the equity is meaningful, your next move might be using that as a learning tool or even a future HELOC rather than forcing a BRRRR right away. I'd treat this as your baseline and only buy the next deal if it clearly beats this one on cash flow and risk.
Do you know roughly what the condo is worth today and what the monthly expenses look like all in?
- San Diego, CA · Member since 2014 · 29 posts · 16 votes8moThe condo is probably worth about $140,000. not sure on expenses right now, but they're pretty minimal outside of HOA. it's been rented by a stable tenant and no mortgage. i'll do some research to find taxes, insurance, HOA, average maintenance charges, etc
Quote from @Brooke Newport:
That condo is a great starting point even though you didn't buy it, because it lets you think like an investor without the risk. At 1650 rent, back out management, maintenance, taxes, insurance, and see what the true net is, then divide that by your share of the property value to get a real return. If the equity is meaningful, your next move might be using that as a learning tool or even a future HELOC rather than forcing a BRRRR right away. I'd treat this as your baseline and only buy the next deal if it clearly beats this one on cash flow and risk.
Do you know roughly what the condo is worth today and what the monthly expenses look like all in?
- 9moShiloh LundahlPro MemberRental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
Hey Steve, here are 4 ways to find wholesalers in an area you want to invest in.
1. google "real estate wholesalers in ________ (fill in the blank)." Then find their email address in their website and send them an email askimg them to add you to their investor buyer email list.2. Add yourself to Facebook groups of real estate investors in the city you want to invest in and post a message saying you are an investor and you want them to add you to their email list.
3. Ask other investors that invest in that particular area which wholesalers are good wholesalers and see if they will share their contact info of one of them with you.
4. Go in person to the area and attend a meetup in person and introduce yourself and let them know you are an investor looking to connect with local wholesalers to find some real estate deals.
Let me know if I can be of any help.
- 8moBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Steven Schuster! You’re asking all the right questions, especially coming from SoCal.
A few thoughts that might help:
1. Out-of-state is very normal (and smart) in your situation
A lot of W-2 investors in high-cost markets start exactly where you’re at. If the numbers don’t work locally, forcing a deal usually creates stress instead of momentum. Investing where you have family, connections, or local knowledge (like Central Illinois) is actually a great first step.
2. Is BRRRR okay for a first deal?
Yes, with guardrails. BRRRR can work well for a first timer if:
You keep the rehab light/moderate (cosmetic > heavy structural)
You underwrite conservatively (don't assume perfect ARV or rents)
You have a solid local team (especially PM + contractor)
Many first-time BRRRRs fail not because of the strategy, but because people bite off too much rehab or get aggressive with numbers.
3. Start with the team before the deal
For out-of-state investing, I always suggest:
Talk to property managers first (they’ll tell you rent reality + tenant quality)
Then investor-friendly agents
Contractors last (once deals are real)
If a PM won’t manage your deal, that’s a red flag regardless of how good it looks on paper.
4. Finding wholesalers
Some practical ways:
Local Facebook investor groups (search “Central Illinois real estate investors”)
BiggerPockets forums + local meetups
Ask agents & PMs who consistently see off-market deals
Call wholesalers even if they don’t have deals. Relationships matter
Just remember: most wholesaler deals don’t work, but the few that do can be great.
5. Conservative first win > perfect BRRRR
Even if your first deal doesn’t pull all your cash back out, getting a clean, stabilized rental that cash flows and teaches you the process is a win.
For context, I’m a real estate agent based in Memphis, TN, and I help a lot of SoCal investors get started out of state with buy-and-holds and BRRRRs. Memphis isn’t the only option, but markets like it tend to be forgiving for first-time investors. If you ever want to compare numbers or just sanity-check a deal, happy to help.
You’re thinking about this the right way! Don’t rush it, but don’t stay stuck either.
- San Diego, CA · Member since 2014 · 29 posts · 16 votes8mo
Quote from @Bernice Retzloff:
Hey @Steven Schuster! You’re asking all the right questions, especially coming from SoCal.
A few thoughts that might help:
1. Out-of-state is very normal (and smart) in your situation
A lot of W-2 investors in high-cost markets start exactly where you’re at. If the numbers don’t work locally, forcing a deal usually creates stress instead of momentum. Investing where you have family, connections, or local knowledge (like Central Illinois) is actually a great first step.
2. Is BRRRR okay for a first deal?
Yes, with guardrails. BRRRR can work well for a first timer if:
You keep the rehab light/moderate (cosmetic > heavy structural)
You underwrite conservatively (don't assume perfect ARV or rents)
You have a solid local team (especially PM + contractor)
Many first-time BRRRRs fail not because of the strategy, but because people bite off too much rehab or get aggressive with numbers.
3. Start with the team before the deal
For out-of-state investing, I always suggest:
Talk to property managers first (they’ll tell you rent reality + tenant quality)
Then investor-friendly agents
Contractors last (once deals are real)
If a PM won’t manage your deal, that’s a red flag regardless of how good it looks on paper.
4. Finding wholesalers
Some practical ways:
Local Facebook investor groups (search “Central Illinois real estate investors”)
BiggerPockets forums + local meetups
Ask agents & PMs who consistently see off-market deals
Call wholesalers even if they don’t have deals. Relationships matter
Just remember: most wholesaler deals don’t work, but the few that do can be great.
5. Conservative first win > perfect BRRRR
Even if your first deal doesn’t pull all your cash back out, getting a clean, stabilized rental that cash flows and teaches you the process is a win.
For context, I’m a real estate agent based in Memphis, TN, and I help a lot of SoCal investors get started out of state with buy-and-holds and BRRRRs. Memphis isn’t the only option, but markets like it tend to be forgiving for first-time investors. If you ever want to compare numbers or just sanity-check a deal, happy to help.
You’re thinking about this the right way! Don’t rush it, but don’t stay stuck either.
wow, thanks for taking the time to post this well-thought response! lots of good info/ advice to consider.
- Contractor · Cleveland, OH · Member since 2026 · 1 post · 0 votes8mo
I’m partial because I work in the area but I definitely recommend NE Ohio! I’ve got some solid wholesalers I can connect with you for Cleveland/akron/Youngstown areas if you’re interested in taking a look at what the numbers look like out here.
There are definitely some things to look out for in this market due to the houses being older but it’s a great market to get started in
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
A quick reframing that might help: BRRRR itself isn't inherently risky, but remote BRRRR as a first deal adds two layers of execution risk at once (rehab + distance). That's where most people get hurt.
If you’re set on Central Illinois and already have connections there, one approach I’ve seen work well is:
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Start with a light-value or rent-ready long-term rental to build your team and underwriting confidence remotely
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Treat your second deal as the BRRRR once you've pressure-tested contractors, property management, and exit values in that market
On wholesalers specifically — be cautious. A "good" wholesaler is less about volume and more about whether their deals survive third-party inspections and conservative appraisals. MLS + tired listings can sometimes be a safer first rep than an aggressive wholesale deal.
Out-of-state can absolutely work, just make sure you’re not stacking too many first-time variables into deal #1.
- San Diego, CA · Member since 2014 · 29 posts · 16 votes8mo
Quote from @Sandy Hu:
Quote from @Steven Schuster:
Hello,
I'm a newbie, looking to get started with my first deal. I have a W-2 income, and some savings for a downpayment. However, I live in SoCal, so properties are very expensive. I want to get started with a BRRRR, but don't think I'll be able to afford it in my area. I'm considering looking in the Central Illinois area, as that's where I'm from and still have some connections there. Does anyone have general advice for out of state investing? Would BRRRR be a prudent strategy for a first timer? How can I find a wholesaler in a specific area? Thanks in advance for any help!
A quick reframing that might help: BRRRR itself isn't inherently risky, but remote BRRRR as a first deal adds two layers of execution risk at once (rehab + distance). That's where most people get hurt.
If you’re set on Central Illinois and already have connections there, one approach I’ve seen work well is:
-
Start with a light-value or rent-ready long-term rental to build your team and underwriting confidence remotely
-
Treat your second deal as the BRRRR once you've pressure-tested contractors, property management, and exit values in that market
On wholesalers specifically — be cautious. A "good" wholesaler is less about volume and more about whether their deals survive third-party inspections and conservative appraisals. MLS + tired listings can sometimes be a safer first rep than an aggressive wholesale deal.
Out-of-state can absolutely work, just make sure you’re not stacking too many first-time variables into deal #1.
Sounds like sage advice. Thanks!
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- Financial Advisor · FL · Member since 2024 · 467 posts · 114 votes7mo
Steven, looking in Central Illinois where you already have connections is actually a big advantage. Out-of-state investing gets a lot easier when you have some local familiarity and people you can call if something goes sideways.
BRRRR can work as a first deal, but the key is keeping it simple. The deals that usually work remotely are light rehabs: paint, flooring, maybe kitchen/bath updates... Once projects start drifting into heavy plumbing, electrical, or structural work, it becomes much harder to manage from a distance.
I’d also focus on building the team before chasing deals. A solid agent, contractor, and property manager will save you more headaches than finding the “perfect” wholesaler.
You’re thinking about it the right way though. A lot of investors in high-price markets start exactly the same way.
Happy to connect and help however I can on your journey.
All the best,
Stevan
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