Serious Question? How do you narrow down a target market?!
Member since 2020 · 14 posts · 16 votes
Serious Question? How do you narrow down a target market?!
Most Popular Reply
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
1y@Amanda Moskowitz, here's another vote for the market you know. For most people this is where they live.
A couple things to think about:
Assuming you are buying single family or small multifamily: your margin for error is very little. (If you own one house making $500/mo, which is probably more than you will actually get, that is $6k/yr. One bad tenant, one unexpected HVAC or roof, will quickly eat all of that profit and then some). So, trusting the PM and RE agent, and the like, at least at first adds a lot of risk. And if you are looking for a BRRR type property, expand that risk even more.
Second, again because you don't have much room for margin starting out, travel to visit that property can quickly eat a good amount of your cash flow. Especially when you only have one, or maybe two, in a market, you will have your fixed costs: hotel, meals out, rental car and flights. Two trips per year, even for only 1 night, can run you a couple grand or more out of that already limited cash flow. This does start to balance out when you add more and more properties in a market, but that is money you could be building for your next one.
Third, you have no choice but to pay a PM when out of market. 10% monthly PM fees, marked up maintenance costs, typically more frequent turn over which equates to more frequent turn over repairs and leasing commissions. It all adds up to very real money. And, while you may choose to use a PM even locally, at least locally, you can step in temporarily if one is not working out, where out of market you need to keep a bad one on, while you interview and try to find a replacement. Additionally, if you go to a smaller market, where you might be able to find more cash flow, you will also be limited in how many PMs you have to choose from.
16 Replies
- 1yDoug SmithPro MemberLender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
Hi Amanda, I've been in the Tampa market for 30 years and our company not only does a ton of financing for investors, but we also have been personally investing for close to 15 years in different areas. I think the key is to have great boots on the ground. Primarily, you need a great contractor that you can trust and doesn't take advantage of you. If you find that, you're half-way home. I was lucky that my wife has a degree in interior design and knows codes inside and out. She's been indespensable in not only our deals, but in a few others as well. I would focus less on market and more on having great "boots on the ground". I you ever want to chat about my "misdaventures", PM me. I would love to answer questions. At one point, "I was there". I have been where you are a few years ago. Good luck to you!
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 963 votes
Hey Amanda — totally hear you on the analysis overwhelm. You’re definitely not alone there, especially with your background and the options you’re weighing.
A few ways that help investors narrow things down:
🔹 Define your non-negotiables — cash flow goals, asset type (SFH, duplex, etc.), climate risks, landlord laws, and travel distance (if self-managing).
🔹 Pick 2–3 markets max to really dive into — learn the zip codes, connect with local boots on the ground, and start underwriting deals regularly.
🔹 Lean into your skillset — with your architecture and capital projects background, you might do really well in value-add or renovation-heavy markets.
🔹 Start tracking deals weekly in each market — patterns will emerge and help you gain conviction.
You’re doing the right thing by gathering info, but don’t wait for perfection — start small and build momentum. You’ll learn way more once you’re in motion.
- New to Real Estate · NY · Member since 2023 · 9 posts · 3 votes1y
Are you planning to rehab it and rent it out, or are you looking for something turnkey? If you're considering a rehab, one piece of advice I’ve found valuable for out-of-state investing is to avoid buying in a place where you don’t know anyone or lack local connections. When you’re investing in a market you don’t live in, having people who can provide insight into neighborhoods or refer reliable contractors and suppliers, etc. can make a big difference.
It’s also important to consider the logistics: how often can you realistically visit? Where will you stay? How will you get around and what will those costs look like, including airfare? Those extra layers of expense and hassle can really cut into your profit.
Some people say all you need is a great realtor, and that might be true for some, but as a beginner, I’ve found it helpful to focus on more affordable markets where I already have some kind of connection, at least for now.
- 1yJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
@Amanda Moskowitz I'd focus in on your backyard and expand from there. ANY HOUSE in ANY MARKET can be a deal. It's all about location, condition, seller motivation, and time in the market.
Sounds like you already own a primary residence? If so, run the numbers as rental? Make that your first rental, buy a distressed property, and try a live-in flip. That's one of the safest strategies you could do. If you're an architect and work with contractors leverage them! If you have market advantages use them. It's easier in your backyard or where ever those connections reside.
- Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes1y
@Amanda Moskowitz, here's another vote for the market you know. For most people this is where they live.
A couple things to think about:
Assuming you are buying single family or small multifamily: your margin for error is very little. (If you own one house making $500/mo, which is probably more than you will actually get, that is $6k/yr. One bad tenant, one unexpected HVAC or roof, will quickly eat all of that profit and then some). So, trusting the PM and RE agent, and the like, at least at first adds a lot of risk. And if you are looking for a BRRR type property, expand that risk even more.Second, again because you don't have much room for margin starting out, travel to visit that property can quickly eat a good amount of your cash flow. Especially when you only have one, or maybe two, in a market, you will have your fixed costs: hotel, meals out, rental car and flights. Two trips per year, even for only 1 night, can run you a couple grand or more out of that already limited cash flow. This does start to balance out when you add more and more properties in a market, but that is money you could be building for your next one.
Third, you have no choice but to pay a PM when out of market. 10% monthly PM fees, marked up maintenance costs, typically more frequent turn over which equates to more frequent turn over repairs and leasing commissions. It all adds up to very real money. And, while you may choose to use a PM even locally, at least locally, you can step in temporarily if one is not working out, where out of market you need to keep a bad one on, while you interview and try to find a replacement. Additionally, if you go to a smaller market, where you might be able to find more cash flow, you will also be limited in how many PMs you have to choose from.
- New to Real Estate · NY · Member since 2023 · 9 posts · 3 votes1y
Would you mind sharing more about your experience and what didn't work well for you when investing out of state?
- So for me, a couple of the issues were as follows no particular order.
Quote from @Jimmy Sullivan:
Would you mind sharing more about your experience and what didn't work well for you when investing out of state?
The property manager did not seem to have as many vendors that were reasonably priced as needed.
The Property Manager charge is 10% on top of any work order made so there was no incentive to Try to get me a better deal from their contractors.
A simple Ac fix or a small section of roof repair. The contractors were trying to sell me brand new ACs or roofs and the PM wasn’t the wiser.so for me I need to be able to get to my properties if need be and check on their conditions and meet with vendors if need. Where I’m at local all my rentals with exception of one are with property managers, but I still get involved if it makes sense. I have a couple of vendors that I can send out to a property here local if the PM vendors are pulling some big Number out of the hat.
If I had a better experience with getting repairs done, and the tenants lasting longer per lease. I’m sure my feelings would be different about out of state investing. It didn’t help matters either that the insurance policy double in a couple of areas where I own properties.
P.S this is simply my experience and view at the time. Someone else could have a much better experience investing out of State.
- Member since 2020 · 14 posts · 16 votes1y
Thanks all for the advice.....really appreciate it. Agreed, that if property is too far out of reach comes with all those challenges. I am fortunate to have a great network in the construction industry that connects me from the commercial side to the residential.
Now the hurdle is living in an expensive market and a whole other thread of discussion in the growth of the Palm Beach Market over the next several years with the commercial expansion. It's the first market I am going to put priority in!
- 1yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Start with areas you know and if you can invest locally, then do it. If the numbers make sense where you are, then buy a place there. There will always be another place that is better, but if you find a place where the numbers work and the property is good, then buy it.
I do not recommend buying in an area you are not familiar with and definitely do not buy a place out of state that requires renos. Start with something simple and straightforward.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
@Amanda Moskowitz I was in a similar'ish position when I made the jump on my 1st one.
I started with one not in an area close to where I currently lived, but in an area I had lived and knew very very well.
And I believe that's what most truly mean when say start near where you live, is start where your knowledge is deep, a market you truly know.
A market can look great on paper, but you don't really know it, until you know it. There is nuances, social norms, all these various aspects that just don't readily present themself on paper.
My 1st one was Richfield MN. There is a major highway running N/S that split's the city right down the middle. Having deep knowledge of the market, I knew that there is a big difference between W of highway vs E side. But on paper, they look the same.
Key thing here is your 1st one, the very beginning. It's so key to start solid, not going for home-runs or grand-slams but solid base hit's at start IS a "homerun".
So keep it simple.
Stick to where your knowledge is deep for the market, or where you get significant hand-holding and someone else deep knowledge ie a quality reputable Turnkey provider.
Yes, one pay's a premium for such of course but think of it like insurance, because really that is the fundamental at play to Turnkey, right, assured results to an unknown.
Other then that, building up the knowledge, deep knowledge, and resources in unknown markets takes months if not years.
I personally track about 30 markets. I believe that's what it takes to peg "good" markets. Not just finding them and starting from 0 when they are "good" but tracking, monitoring, for years, so one knows when it comes into a good acquisition zone.
I love Nashville, but the $ does not work for me right now. So I monitor. Keep informed. Same goes for Tampa, DFW, Charlotte, etc etc etc..
You start with market fundamentals that you like, and then monitor for the opportunity. Not chasing opportunity and hoping the fundamentals work out.
- 1yJon HuberPro MemberRental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votesHey Amanda... I feel your pain. I've been there. This is such a loaded question because the answer is always "depends". Here are the depending factors:
Quote from @Amanda Moskowitz:
Any advice on how to narrow down on the markets?
- How much time do you have to dedicate to this (ie, active, passive, etc)?
- How comfortable are you with leverage (ie, buying cash, getting loan)?
- Do you have advantages in any markets (ie, friends or family somewhere)?
- Are you comfortable with out of state investing?
- Are you comfortable buying site unseen?
- Is cash flow your only concern (ie, trading 0% appreciation for it)?
- Etc Etc...
It may be worth joining our monthly meetup in Delray to chat about it. We sit around and talk about real estate investing over coffee. Second Saturday of every month. - 1yJorge VazquezBusiness MemberReal Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 699 votes
Amanda, I love that you’re diving in—and here’s the thing: Most people saying “I want to buy some properties” is a great spark, but it needs structure. As a former financial advisor, I always say: you’ve gotta quantify the dream. Most investors fail because they can't answer the simple question: "What's the goal?" Is it $5K/month? Ten doors? Retiring early? Once you know that, everything changes. You pick your strategy—BRRRR, house hack, or all-cash flow—and then you build your buying box (price, rehab level, rent target, return). That’s when tools like Google or ChatGPT become powerful. Ask, “Best BRRRR cities in Florida” or “Top Florida markets for cash flow multifamily in 2025.” And here’s the important truth most people miss: the best cash-flowing markets are not the best BRRRR markets, and the best areas for equity growth usually won’t cash flow great. That’s why knowing your goal and lane is everything.
For me, I’ve done over 40 BRRRRs and didn’t put a dollar in on most of them. I love Pasco and Polk County—tons of upside, great rent-to-price ratios, and space to force equity. But if you’re holding cash and chasing monthly income, Tampa and Clearwater, especially in low-income and Section 8–friendly areas, are hard to beat. That’s mailbox money from day one. Once you know your strategy and have your buying box locked in, the right markets jump off the screen. You’re not guessing—you’re building momentum with intention. You’ve already got the capital, the mindset, and the skills. Now it’s just time to pick your lane and drive. Let’s go!
P.S. You can always ask your property manager—or reach out to our team, since we specialize in finding off-market deals in the area.
Graystone Investment Group517 Reviews - 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Hey! That’s not a rant at all - that’s a clear, thoughtful reflection and honestly, you’re in a great position to hit the ground running.
With your capital reserves ($150K), project management background, and real estate exposure, you already have a strong foundation. The key now is clarity and focus, especially with so many market options available.
How to Narrow Down Markets Without Losing Your Mind:1. Get Ultra Clear on Your Strategy & Criteria First
Before picking a market, ask yourself:
Am I looking for cash flow, appreciation, or a blend?
Am I open to Class B/C neighborhoods, or only Class A?
Do I want to self-manage or fully outsource (PM)?
Am I comfortable with value-add projects or prefer turnkey?
For a $5K/mo cash flow goal in 5 years, that’s likely:
8–10 solid cash-flowing rentals (or fewer if you go into small multis)
Conservative cash flow target: $300–600 per door/month
Focus on landlord-friendly states, lower entry costs, and steady rental demand
Markets Worth Considering (beyond Florida):
Since you’re open to out-of-state, here are some proven, cash-flowing markets to help narrow the list:
-Akron & Canton, OH
Extremely affordable buy-in ($80–130K SFH or duplex)
Strong rental demand
Great for high cash-on-cash returns
Landlord-friendly (especially compared to most Northeast & West Coast states)
-San Antonio / Dallas-Fort Worth / Houston, TX
Solid economy & job growth
Large pool of renters
Favorable landlord laws
Properties are more expensive than OH, but still doable with your budget
-Ocala, FL
Lower cost than Tampa/Orlando
Steady population growth
Excellent for long-term buy-and-hold
-Memphis, TN
One of the best cash-flow markets historically
Property management infrastructure is strong
Lower appreciation, but very cash-flow rich
How Others Narrow Down Markets (and How You Can Too)--
Here’s a simplified process:
Pick 3 markets that meet your criteria (e.g. landlord-friendly, $100–250K homes, etc)
Run the numbers on 5–10 sample deals per market
Assess deal flow, cap rates, and comfort with the area
Commit to ONE market to take action in the next 30 days
Optional Acceleration Strategy:
To hit $5K/month in 5 years--
Plan to acquire 1–2 properties per year
Leverage 1031 exchanges later to upgrade into larger assets
Recycle capital through cash-out refinances or partnerships
Use turnkey operators or boots-on-ground teams if you’re out of state
You don’t need to find the perfect market - just a good market with solid numbers and a reliable team. With your background, you’ll crush it once you commit to a direction.
Always happy to help compare a few sample markets if you want to dig deeper. Best of luck! - Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes1y
Quote from @Amanda Moskowitz:
So I am looking to purchase my first deal. I am fortunate enough from years in corporate that I have capital ($150K) to make the leap. I am an architect by trade working in a global commercial real estate managing clients capital improvement projects (projects range from several million to as large as $300M) throughout my career. I have immersed myself in reading, podcasts, etc for investing and have been exposed to real estate most of my career so analyzing a deal doesnt scare me (even though I know there is a tremendous amount to learn in this specific arena).
Any advice on how to narrow down on the markets? MY head is spinning and jumping all over the map. I reside in S. Florida in Boca Raton. I keep bouncing from my area or West Palm Beach, Jacksonville, Tampa, Palm Coast......you name it. And even out of state. How did you get started and know the right area to start?
Ideal goal (maybe not realistic) is to aim for $5K cashflow per month in 5 years. Thanks for listening to my rant :)
I agree with many that starting in your own backyard is a very good option. As I'm sure you aware real estate is de-centralized so knowing an area is highly important and will take time to learn.
However, instead of repeating what some other people have reiterated I'll give some other questions or thoughts on the subject.
1. If you do want to do somewhere else, do you plan to visit the area often and is it a place you would enjoy visiting? That shouldn't be your main priority, but many real estate investors turn checking in on a property into a small family vacation. Would you want to do that in Tampa, Jacksonville, Ocala, etc., it's your decision.
2. On the flip side to 1, do you want to be able to drive by often or check in often, and if so does that limit how far away you would want to buy? Or do you not really want to check in and trust professionals you hire and it doesn't matter as much.
3. Back into it! I love that you said $5k in cash flow per month in 5 years, but expand on that further. How much property would you need to buy? How much equity and debt? What types of properties or assets could do that? A mobile home park in Lake City, FL versus a luxury condo in Miami, are producing two very different cap rates or yields, and to get to $5k in cash flow per month would effect how much equity you might need.
I've bought 150+ units of multifamily in Jacksonville, and we manage properties in Orlando and Jacksonville so if I can be of any help please don't hesitate to reach out! - 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hello @Amanda Moskowitz!
It sounds like you’ve got a strong foundation with your capital, real estate background, and analytical skills, which puts you ahead of the curve. The market overwhelm is totally normal. Analysis paralysis is real, especially when you’re considering both in-state and out-of-state options. One way to narrow things down is to get super clear on your investing priorities: is it cash flow, appreciation, ease of management, or long-term scalability? For example, your $5K/month cash flow goal in 5 years is absolutely achievable, but probably not in markets like Boca or WPB unless you go heavy on appreciation plays.
A lot of newer investors in your position end up targeting landlord-friendly, affordable cash-flow markets like Memphis, TN where $100K–$150K homes still exist, tenants are steady, and property management is well established for out-of-state investors. With your experience, you’d adapt quickly once plugged into the right team (agent, PM, lender, etc.). You might want to look at markets where a $30K–$50K down payment can get you a property cash-flowing $300–$400/month and then stack those strategically. Pick one market to deep dive into and build your team there before expanding. Happy to help if Memphis is on your radar! It’s a great market for exactly what you’re trying to do. You’re absolutely on the right track.
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