I like investing in the Midwest because it’s affordable and offers good cash flow. Using David Green’s Core 4 strategy (realtor, contractor, property manager, and lender) makes me confident to invest anywhere. I mainly focus on Columbus, Ohio, where big tech companies like Intel, Meta, Amazon, and Google have moved in, boosting property values and job growth. For great cash flow opportunities, definitely check out Cleveland and Dayton. Let me know how I can help Erich!

For land? Or for buying rental properties? Or? Can you narrow the scope?

@Erich Oertel

Besides the Ohio... take a look at markets close to where you live or can get to and back in less than a day.  Also, consider what markets are not great to invest in.  I'm in the Reno, NV area and there are great opportunities here with the landlord-friendly laws, job growth, and above-average appreciation. That doesn't mean it's the best market for everyone. It makes sense for West Coast investors but not so much for East Coast investors or someone looking for a sub-100k property. It's good to look at data and then your lifestyle, time, and energy to find the greatest city to invest.

I'm biased, but Omaha, NE is a solid market to invest in.

Pros: Diverse job market, low unemployment, great resilience during recessions, nice appreciation, 1% rule can be hit if you look hard enough, great economy, good schools, Midwest nice.

Cons: Extreme weather at times (hot/humid summers, tornadoes/hail, brutal cold in Jan/Feb), high insurance premiums, property taxes also really high.

 It depends on your goals. It is common for most OOS investors to invest in the midwest. I personally invest here in Columbus and work with a ton of OOS investors here. 

There's been significant growth in the last 3-5 years, with booming business and real estate sectors. Companies like Intel, Amazon, and Google are investing here.

Hey Erich, the Midwest has several promising real estate markets for investment depending on your goals. For steady cash flow, check out Cleveland OH. It offers strong potential for rental income. If you're more focused on appreciation, Columbus will be a great option due to its growing population and favorable economic conditions.

Columbus, Ohio is a great market to consider if you're leaning towards appreciation. I moved here from Florida after seeing the expansive growth in the Columbus market.

There are multiple billion dollar companies dumping money into the city, such as Intel, Google, Honda, and Amazon. This is causing a huge influx of people moving here for jobs. And a lot of start-up companies are migrating to this city as well because of the OSU campus that has thousands of talented students graduating and looking for positions locally.

Everything that’s going on here in Columbus is attracting investors and other businesses from all over. A recent study showed that 80 people are moving to this city every single week, which will continue to increase housing demand.

No broad cities cashflow great right now with managers, some look good on paper but they just have more costly hidden issues then the lower cap rate cities. Markets are relatively efficient and the strong cashflow days were 5+ years ago. If want outsized returns look for cities with areas that are gentrifying as this is where you can get above market rent growth and appreciation. For example I have a 4 unit in Rogers Park chicago its gone from working class with some gangs to now houses over a million being built and rents up 50% to a few years ago, same happening in Portage Park and Albany Park. 

Hi Erich! You may want to check the Columbus OH market. The city is rapidly growing with many companies choosing to move and develop here like Intel, Google, Honda, Amazon, Meta, etc. The job market is growing along with the population. My out-of-state clients (many of them from California!) are successfully BRRRRing and flipping here. You can still find 1% and positive cash flowing deals here plus lots of appreciation potential. Happy to connect and answer your questions.

 Everywhere is great. Just depends on strategy and implementation. There's always opportunity, sometimes you gotta kiss alot of frogs though.

Hi, I'm the Market Intelligence Analyst here at BiggerPockets--so analyzing markets is all I do. While you may not be considering moving to a market and house-hacking, I think this BiggerPockets article still offers great data for out-of-state buy-and-hold investors.

Key takeaways: Fayetteville, AR and Indianapolis, IN may be good places for you to start if you're new. Not included in the article (but in an upcoming one I'm drafting right now) is Columbus, OH like others have stated. These 3 metros have prices cheaper than the national average, healthy rent-to-price ratios, and growing economies--solid market fundamentals. 

I recommend hopping on Redfin, Zillow, or the BiggerPockets Deal Finder right away to start looking at what's available in your price point. Hope this helps.

There's no one size fits all approach to real estate investing and depending on your resources, skill set, and capabilities you may excel in one particular market or utilizing a specific strategy whereas another investor will excel using a different approach.  For illustration purposes, the investor with engineering and/or construction background may excel building in a market where there is ease in doing business and can build efficiently whereas the doctor may have greater success in the established market where significant barriers already exist but can afford the entry price and can ride the waive of continued appreciation and offset their high salary by depreciating the expensive building they acquired. 

 I believe the better question to ask would be: Based on my skills, employment, time availability and resources which are ______, what is the best city and strategy for me? This ultimately why the $100k midwest single family homes are frequently discussed in these forums.....its what many are able to afford to buy. While it may be the best available option for some given their particular resources and capabilities, it may not for others.

 Cleveland of course. It has been #1 or in the top 3 for the last 10 + years. 10% + NET are to be had based on cash purchases, 

Good luck 

Wow, nobody mentioned Detroit yet?! 

I have 12-doors there and live in California. The city has been undergoing massive revitalization over the last 10+ years, has seen its first population uptick in nearly 70 years, and prices have doubled in the last 5 years.

A lot of folks are finally starting to understand there's a lot of interesting growth happening in Detroit. But the fact that I'm the first one to mention it here goes to show that it's still early innings.

Happy to share some resources about the market there if you're interested.

Biased to Kansas City :)

Hey @Erich Oertel! A little biased here, but Branson, Missouri is a hidden gem. With a thriving tourism scene and steady year-round visitors, it’s perfect for short-term and long-term rentals as long as you are choosing an unsaturated asset class. The lower entry costs compared to other markets, plus lower taxes, make it great for consistent cash flow. Branson’s ongoing development also offers strong potential for appreciation. If you're after rental income and long-term growth, Branson is a great option.

Kansas City is a great city to invest in. I can show you some really good stats about it and all of the different sub markets so you know what, in general, is a class A, B, C or worse and what markets to stay away from. 

Hi, Ohio has a great real estate market. The market is good for whatever you decide to do with your real estate portfolio. Feel free to reach out. Best Wishes!

Looking for a great balance of cash flow and appreciation in a growing market with solid fundamentals?

Check out Clarksville, TN! 

Hi, check out Ohio it is a very good place to invest in real estate. My clients are from all over the world is investing in Ohio. If you have any questions, please feel free to reach out. Best Wishes!

 I have to concur with what Owen has said above!

Omaha has a lot of good stuff going for it, weather and taxes being the biggest drawbacks. There are very few places where you can still get anywhere near the 1% rule, and in Omaha you really don't have to look that hard to find those opportunities in droves.

Not to get too into the weeds, but I have a thesis that the Midwest as a whole will begin to outperform the coastal and southernmost cities as time goes on-- primarily driven by increasing COL & decreasing QOL in said coastal urban cities. 

In 2021, Omaha was ranked the #4 city for new homeowners- and I think with the next wave of QE heading for markets, the gap for affordability in high-demand coastal metros will just make midwest flyover cities that much more attractive to would-be homeowners, in particular remote workers.

Within Omaha, there are entire neighborhoods being refreshed by investors and homeowners alike, as well as new home developments popping up on the outskirts of Omaha left and right. Despite the developments, Omaha is still short 35k affordable housing units- presenting a lot of opportunity for developers and new builds for investors. 

For schools, Omaha has an excellent public school system and has multiple counties with nationally ranked high-schools. The final pro for Omaha that I'll list, is that our Airfield (Eppley) is now in the process of adding an international expansion-- making it an even more attractive place to be that is centrally located, affordable, and primed for continued growth!

 Good morning Simon: what is the best phone number for me to contact you? I work with an Equity Group of investors and in market for Multifamily deals, Property type B & C. 

 Hey Monir, I'll send it over. Let's connect.