Out of State for 1st Deal- Alabama or Ohio?
I’m evaluating my first deal and staying local (Washington DC) means high prices and low rents. I would tie up most most of my initial investment cash in a property that barely generates cash flow from what I see here. I feel like this violates all advice (invest local in neighborhoods that you know), but am starting to look out of state. I’ve heard Alabama and Ohio (Cleveland, Toledo) are good markets for positive cash flow. Also, lower prices means I could scale up multiple properties faster. A few questions from the forum:
1) Did anyone go out of state for their first deal? Any recommendations, given challenges of doing the deal remotely? Who did you work with in local markets, on the ground and what commissions did you pay them? How did you find properties? SFH or Multifamily?
2) Anyone with experience in Ohio or Alabama? Which cities/markets have strong positive cash flow opportunity? Any resources (agents, wholesales, other tools) you recommend to help find/evaluate properties in those markets?
Appreciate your help!