What Markets in the Midwest?

Question

Hello!

I'm a starting investor who wants to do out of state investing. I'm well aware that requires a bit more effort and caution. My strategy is to focus on cheaper markets (my first home I'm looking for I'd like to be under $120k if possible) out in the midwest as long-term rentals. I have a few areas in mind, but I wanted to see if there were any places that you all would suggest and get any thoughts on my strategy. I've found some cities that seem great, but the crime rate is pretty high. Any guidance here would be very much appreciated!

If you have any places in mind, I'd love to know if you have any contacts there so I can learn more! Thanks!

Evan Polaski · Answer

@Patrik Drean, I would also consider how easy these areas are to get to.  Can you catch direct flights, or is it 2-3 stops with a 2 hr drive on the tail end?  As you are getting established, you will likely need to be there quite frequently.  Once you are established, I recommend being in the market a couple times per year to check in with your team and on your properties.

If there is a market that you have a connection to already, that always helps as well.  Whether it be family in the area, a favorite football team, etc since it will make it easier to want to go there when you need to.

Patrik Drean · Answer

Those are all really good points. Thanks for the added perspective!

Jaron Walling · Answer

@Patrik Drean There are a number of mid west cities with good neighborhoods for investing. Instead of thinking about a price point and cash-flow I'd focus on your team. What market(s) will give the best chance to build a team? You need wholesalers, real estate agents, contractors, and boots on the ground with local experience.

You can't blanket the mid west and "search" for property. Finding a good DEAL will come if you keep asking questions and narrow down the search. It took me 12 months to find a neighborhood in my city and I'm a local!