Looking for cash flowing remote market recommendations to start researching

Multi-Family and Apartment Investing
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Looking for cash flowing remote market recommendations to start researching

Adam Gusky
New to Real Estate · Denver · Member since 2023 · 16 posts · 11 votes

Hello, 

I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

Appreciate any advice and tips!

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Dan GuentherBusiness Member
Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
3y

Hey @Adam Gusky - welcome to the community ! 

My first question is will you be renting while investing in an out-of-state market? 

If you were to stay in Denver paying rent of $1200+/month (likely much higher) while cash flowing around $100/month on a $100K property would that make for a good investment? 

There pros and cons with both options. Investing here in CO might have a higher point of entry but you would also be able to learn hands-on how to manage a property. If you could get into a house hack and cut out or eliminate your living expense, you would be able to scale much quicker. Larger metros also typically appreciate at higher rates which is a bonus. 

Another point to consider is the downpayment options for owner-occupied (you must live in the property for at least 12 months) vs non-owner-occupied financing. 

With owner-occupied loans, you can go as low as 3% down compared to non-owner-occupied loans which range from 10%-25% with the average lender requiring 15%-20% down. Also, as a first-time homebuyer, you could qualify for grants and down payment assistance. 

Owner Occupied - $300,000 purchase price with 3% downpayment = $9,000

Non-Owner Occupied Investment loan - $300,000 PP with 20% down = $60,000 

Denver is definitely an expensive market but if you are willing to get creative there are still deals to be had. You might want to consider smaller markets like Greeley where you can still find cash-flowing deals under $400K. 

It's great that you have options though and one strategy does not fit all in the real estate game. Take some time to thoroughly research different strategies before making any decisions. 

[email protected]720-295-1082
Ten Ridge Realty LLC514 Reviews
WebsiteView Page
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  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    Central Indiana

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3y

    Remote managing will be harder. I'd recommend hiring a PM. Down the road you can self manage but for the first it's best to be safe. On markets Midwest is the most popular, happy to chat on KC

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Adam Gusky:

    Hello, 

    I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

    Appreciate any advice and tips!


     If you are cash so what investors from around the world are and have been doing for years. Buy in the Cleveland markets. 10% or so net caps are to be had. I just picked up 9 more doors all with 20% or so net caps 

    Good luck 

    1Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y
    Quote from @Adam Gusky:

    Hello, 

    I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

    Appreciate any advice and tips!


     As you have seen, midwest. For cash flow you can visit just about everywhere here and it has it. I recommend Ohio beyond that, then Cincinnati. Cincinnati has cash flowing properties available, really a mix of cash flow and appreciation, and as well as that I have started cold calling owners and have picked up some things there for my buyers. I like to give my clients, buyers, the first swing at them and if they don't get it I will list it. Let me know if Cincinnati interests you!

    [email protected]859-443-4952
    Sam McCormack Realtor
    View Page
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    3y
    Quote from @Adam Gusky:

    Hello, 

    I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

    Appreciate any advice and tips!


     Managing your own properties out of state rarely works out. I recommend you hire a PM for any out of state investments.

    0Reply
  • Adam Gusky
    OP
    New to Real Estate · Denver · Member since 2023 · 16 posts · 11 votes
    3y
    Quote from @James Wise:
    Quote from @Adam Gusky:

    Hello, 

    I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

    Appreciate any advice and tips!


     Managing your own properties out of state rarely works out. I recommend you hire a PM for any out of state investments.


    That is what I’m planning on doing 

    0Reply
  • Jimmy Bostic
    Investor · Columbus, OH · Member since 2023 · 73 posts · 82 votes
    3y

    @Adam Gusky Cleveland is a good market to consider for cash flow

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Adam Gusky:

    Hello, 

    I am looking to purchase my first property between $100-$300k that I can manage remotely. I care more about cash flow than appreciation, but obviously don't want to be in an area that is depreciating at the same time. Open to hearing about Airbnb/vrbo but had 12/yr lease in mind.

    Appreciate any advice and tips!

    Hi Adam, I recommend that you look into Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    Adam, give Detroit a look.

    I live in CA but have 12-doors in Detroit that I self manage. It can be done if you understand the market and build a solid network.

    I have a very strong team on the ground and help people get started there. So shoot me a message if I can be helpful on that front or just with general info.

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    @Adam Gusky

    You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

    https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

    Our analysis is a template you can follow for any city. Doubt you'll find this much info for any other market in the US. So, why would you invest remotely anywhere else?

    Logical Property Management4.9454 Reviews
    WebsiteView Page
    0Reply
  • Jeff Roth
    Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 466 posts · 257 votes
    3y

    Hi Adam-

    This is a great question.

    I too focus on cashflow but also want some appreciation and that is why I like the Lansing, MI market.

    I work with two property managers there that are very good and can help you manage your properties remotely.

    To Your Success!

    0Reply
  • Zachary Ware
    Member since 2022 · 405 posts · 455 votes
    3y

    For that price point, I would recommend looking at some of the tertiary markets in the Sunbelt. I think remote managing is possible for a single-family LTR. You just have to build your team there before you need help. First you should be picking what markets you are looking at. Then you should speak with a lender to find out what your financing will look like so you can accurately underwrite deals. Your next step will be finding agents/brokers who work with investors in your target markets. Once you close on a property actively call and interview contracts/handymen/agents. You will need someone who can be boots on the ground for showing, inspections, maintenance, etc. 

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Adam Gusky

    that's a big range.

    why not pick a market that is local - within a few hours driving distance?  this will allow you to be hands on and build a network in a way it is not possible to do thousands of miles away.

    0Reply
  • Erin AzarPro Member
    Rental Property Investor · IN · Member since 2021 · 49 posts · 36 votes
    3y

    Indiana has been great to me. Lots of good markets with surprisingly strong appreciation. The prices are still far below affordability, given current household earnings. That is part of what makes the Midwest charming (I live here too), but not sure that will continue. 

    1Reply
  • Adam Gusky
    OP
    New to Real Estate · Denver · Member since 2023 · 16 posts · 11 votes
    3y
    Quote from @Nicholas L.:

    @Adam Gusky

    that's a big range.

    why not pick a market that is local - within a few hours driving distance?  this will allow you to be hands on and build a network in a way it is not possible to do thousands of miles away.

    I’m in Denver and it’s just too expensive.
    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    right - what about any submarket within 2-3 hours of denver?

    0Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    3y

    Kansas City!

    I'd be happy to connect if you are interested or willing to consider =)

    [email protected]
    0Reply
  • Dan GuentherBusiness Member
    Real Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
    3y

    Hey @Adam Gusky - welcome to the community ! 

    My first question is will you be renting while investing in an out-of-state market? 

    If you were to stay in Denver paying rent of $1200+/month (likely much higher) while cash flowing around $100/month on a $100K property would that make for a good investment? 

    There pros and cons with both options. Investing here in CO might have a higher point of entry but you would also be able to learn hands-on how to manage a property. If you could get into a house hack and cut out or eliminate your living expense, you would be able to scale much quicker. Larger metros also typically appreciate at higher rates which is a bonus. 

    Another point to consider is the downpayment options for owner-occupied (you must live in the property for at least 12 months) vs non-owner-occupied financing. 

    With owner-occupied loans, you can go as low as 3% down compared to non-owner-occupied loans which range from 10%-25% with the average lender requiring 15%-20% down. Also, as a first-time homebuyer, you could qualify for grants and down payment assistance. 

    Owner Occupied - $300,000 purchase price with 3% downpayment = $9,000

    Non-Owner Occupied Investment loan - $300,000 PP with 20% down = $60,000 

    Denver is definitely an expensive market but if you are willing to get creative there are still deals to be had. You might want to consider smaller markets like Greeley where you can still find cash-flowing deals under $400K. 

    It's great that you have options though and one strategy does not fit all in the real estate game. Take some time to thoroughly research different strategies before making any decisions. 

    [email protected]720-295-1082
    Ten Ridge Realty LLC514 Reviews
    WebsiteView Page
    1Reply
  • Alex F.
    Investor · Plymouth, MN · Member since 2020 · 157 posts · 102 votes
    3y

    @Adam Gusky. My recommendation is:

    A. Find a vacation spot you like going that will be increasing in popularity in the future....ideally a place you are familiar with.

    B. A constrained market.....either with limited areas where you can get an STR permit or limited properties....once you identify an area and price range use Zillow to get notified right away but be ready to do an offer right away. You don't be the only one watching.....

    If you can find A and B together you are set!! Great cash flow and a place to go yearly on vac.

    Now in regards do remote managing definitely doable.....but you will learn tons along the way. We manage 7 remotely in different cities with an 8th in progress.....we made a ton of little mistakes early on.....it helps a ton being tech savvy....setting up ring camera, water leak monitor, pms, emails workflows, etc.

    I have a book half written on remote managing properties 7 properties on less than 15 mins a day. Hope to finish in next couple of months....

    1Reply
  • Account Closed
    Columbus, OH · Member since 2023 · 427 posts · 254 votes
    3y

    As @James Wise pointed out, "remotely managing" will not work well 9 times out of 10, unless you mean hiring a PM  on the ground. Looks like my Columbus guys beat me to the punch- as far as the midwest goes for an affordable, high cashflow market, I consistently hear about Dayton, Cleveland, Detroit, and I still come across cash flowing deals here in Columbus. 

    0Reply
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