Investing in different cities.

[Kyle Lam]

Hi All!

I wanted to create a post to get a better idea of what other areas are good for investing in rental properties. I am currently located in the Philadelphia area. In general I wanted to ask and see what are some of the best cities to get into for rental investments and what particular makes these cities good places to invest in. Would love to get honest feedback from anyone out there! 

[Melissa Justice]

@Kyle Lam,

Since you’re in Philly, I completely get the desire to explore other markets where price-to-rent ratios are stronger and properties can cash flow from day one. A few markets that consistently stand out for rental properties are:

Midwest – Cities like Akron & Canton, OH and Memphis, TN are known for affordable single-family rentals in the $140k–$200k range with solid rent-to-price ratios. They also benefit from steady demand, blue-collar job bases, and landlord-friendly laws.

Southeast – Birmingham, AL and Columbus, GA are investor favorites because of population growth, affordability, and strong rental demand. Plus, you’ll often find new construction rentals with builder incentives that help cash flow better.

Secondary/Suburban markets – Instead of competing in major metros, looking at surrounding areas (outside Atlanta, Dallas) can mean lower entry costs with solid appreciation potential.

What makes these markets attractive for investors is the combination of affordability, stable job growth, and landlord-friendly regulations. They allow you to scale more easily compared to high-cost, low-yield markets.

If you’re newer to out-of-state investing, I’d recommend starting with turnkey single-family rentals where the property is already rehabbed or it's a new build (often times even leased) and management is in place. It removes a lot of the operational headaches while you’re learning the ropes.

Happy to share more detail on specific neighborhoods and what's worked for other investors. Best of luck!