Looking for new out of state markets

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Looking for new out of state markets

Roman Ripp
Member since 2019 · 33 posts · 23 votes

I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  

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Eric FernwoodBusiness Member
Realtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votes
3mo

Hello @Roman Ripp,

Instead of giving you a list of investment cities, I'll share the criteria I used to identify cities that support a monthly income stream that lasts 20 to 40 years and rents that increase faster than inflation.

Rent growth is not a property feature. It is a city feature.

Think of the city as a harbor and rents and property values as boats floating in it. Population growth is the tide. When more people move into a city, housing demand increases and rents and property values tend to rise. When population growth slows or declines, rent growth often stalls or falls behind inflation.

A great property cannot overcome a declining city. An average property in a growing city can perform very well over time. The property is simply a tool used to attract a tenant segment who stays for many years and pays the rent on schedule.

When evaluating cities, I focus on six factors:

  1. Strong Population Growth – Start with metro areas of at least one million people that have a long history of steady population growth. Wikipedia
  2. Low Crime – High crime drives away both employers and residents, reducing long-term housing demand. CBS: The 50 Most Dangerous Cities in America
  3. Low Operating Costs – Property taxes and insurance have a major impact on long-term cash flow. Insurance - ValuePenguin, Metro Property Taxes - LendingTree, Florida's average insurance cost. See below for an example comparing three no-state-income tax states.
  4. No Rent Control – Rent control can limit rent increases, restrict tenant selection, and make evictions more difficult. Google "[city] rent control"
  5. Rising Personal Income – Rents cannot rise long term unless local incomes rise as well. Here is a Federal Reserve chart of personal income growth in Clark County, Nevada (Las Vegas).
  6. A Strong Local Investment Team – Local expertise is essential for property selection, renovation, management, and tenant placement.

Eliminate every city that fails any of these tests. What remains is a short list worth serious consideration.

Operating Costs

Operating costs vary dramatically by state. Property taxes and insurance can have a larger impact on cash flow than many investors realize.

State Avg. Insurance Avg. Property Tax %
Florida $10,996 0.91%
Texas $2,317 1.68%
Nevada $965 0.59%

To put these numbers into perspective, below are the estimated annual insurance and property tax costs for a $400,000 property.

State Insurance Property Tax Total
Florida $10,996 $3,640 $14,636
Texas $2,317 $6,720 $9,037
Nevada $965 $2,360 $3,325

Compared to Nevada, a property must generate substantially more cash flow just to offset higher operating costs:

  • Florida: Requires an additional $11,311 per year ($14,636 - $3,325).
  • Texas: Requires an additional $5,712 per year ($9,037 - $3,325).

The takeaway is simple: operating costs have a major impact on long-term cash flow. A city with lower taxes and insurance gives you a significant advantage before you ever collect the first month's rent.

[email protected]702-358-8884
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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3mo

    Happy to chat on KC. Solid Midwest market

    0Reply
    • Roman Ripp
      OP
      Member since 2019 · 33 posts · 23 votes
      3mo
      Quote from @Caleb Brown:

      Happy to chat on KC. Solid Midwest market


       Thank you for your reply! What is the big box that works in KC? I prefer duplexes in 150 - 300k range. 

      0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votes
    3mo

    Hello @Roman Ripp,

    Instead of giving you a list of investment cities, I'll share the criteria I used to identify cities that support a monthly income stream that lasts 20 to 40 years and rents that increase faster than inflation.

    Rent growth is not a property feature. It is a city feature.

    Think of the city as a harbor and rents and property values as boats floating in it. Population growth is the tide. When more people move into a city, housing demand increases and rents and property values tend to rise. When population growth slows or declines, rent growth often stalls or falls behind inflation.

    A great property cannot overcome a declining city. An average property in a growing city can perform very well over time. The property is simply a tool used to attract a tenant segment who stays for many years and pays the rent on schedule.

    When evaluating cities, I focus on six factors:

    1. Strong Population Growth – Start with metro areas of at least one million people that have a long history of steady population growth. Wikipedia
    2. Low Crime – High crime drives away both employers and residents, reducing long-term housing demand. CBS: The 50 Most Dangerous Cities in America
    3. Low Operating Costs – Property taxes and insurance have a major impact on long-term cash flow. Insurance - ValuePenguin, Metro Property Taxes - LendingTree, Florida's average insurance cost. See below for an example comparing three no-state-income tax states.
    4. No Rent Control – Rent control can limit rent increases, restrict tenant selection, and make evictions more difficult. Google "[city] rent control"
    5. Rising Personal Income – Rents cannot rise long term unless local incomes rise as well. Here is a Federal Reserve chart of personal income growth in Clark County, Nevada (Las Vegas).
    6. A Strong Local Investment Team – Local expertise is essential for property selection, renovation, management, and tenant placement.

    Eliminate every city that fails any of these tests. What remains is a short list worth serious consideration.

    Operating Costs

    Operating costs vary dramatically by state. Property taxes and insurance can have a larger impact on cash flow than many investors realize.

    State Avg. Insurance Avg. Property Tax %
    Florida $10,996 0.91%
    Texas $2,317 1.68%
    Nevada $965 0.59%

    To put these numbers into perspective, below are the estimated annual insurance and property tax costs for a $400,000 property.

    State Insurance Property Tax Total
    Florida $10,996 $3,640 $14,636
    Texas $2,317 $6,720 $9,037
    Nevada $965 $2,360 $3,325

    Compared to Nevada, a property must generate substantially more cash flow just to offset higher operating costs:

    • Florida: Requires an additional $11,311 per year ($14,636 - $3,325).
    • Texas: Requires an additional $5,712 per year ($9,037 - $3,325).

    The takeaway is simple: operating costs have a major impact on long-term cash flow. A city with lower taxes and insurance gives you a significant advantage before you ever collect the first month's rent.

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    4Reply
    • Amit PrasadBusiness Member
      Investor · Member since 2026 · 20 posts · 14 votes
      3mo
      Quote from @Eric Fernwood:

      Hello @Roman Ripp,

      Instead of giving you a list of investment cities, I'll share the criteria I used to identify cities that support a monthly income stream that lasts 20 to 40 years and rents that increase faster than inflation.

      Rent growth is not a property feature. It is a city feature.

      Think of the city as a harbor and rents and property values as boats floating in it. Population growth is the tide. When more people move into a city, housing demand increases and rents and property values tend to rise. When population growth slows or declines, rent growth often stalls or falls behind inflation.

      A great property cannot overcome a declining city. An average property in a growing city can perform very well over time. The property is simply a tool used to attract a tenant segment who stays for many years and pays the rent on schedule.

      When evaluating cities, I focus on six factors:

      1. Strong Population Growth – Start with metro areas of at least one million people that have a long history of steady population growth. Wikipedia
      2. Low Crime – High crime drives away both employers and residents, reducing long-term housing demand. CBS: The 50 Most Dangerous Cities in America
      3. Low Operating Costs – Property taxes and insurance have a major impact on long-term cash flow. Insurance - ValuePenguin, Metro Property Taxes - LendingTree, Florida's average insurance cost. See below for an example comparing three no-state-income tax states.
      4. No Rent Control – Rent control can limit rent increases, restrict tenant selection, and make evictions more difficult. Google "[city] rent control"
      5. Rising Personal Income – Rents cannot rise long term unless local incomes rise as well. Here is a Federal Reserve chart of personal income growth in Clark County, Nevada (Las Vegas).
      6. A Strong Local Investment Team – Local expertise is essential for property selection, renovation, management, and tenant placement.

      Eliminate every city that fails any of these tests. What remains is a short list worth serious consideration.

      Operating Costs

      Operating costs vary dramatically by state. Property taxes and insurance can have a larger impact on cash flow than many investors realize.

      State Avg. Insurance Avg. Property Tax %
      Florida $10,996 0.91%
      Texas $2,317 1.68%
      Nevada $965 0.59%

      To put these numbers into perspective, below are the estimated annual insurance and property tax costs for a $400,000 property.

      State Insurance Property Tax Total
      Florida $10,996 $3,640 $14,636
      Texas $2,317 $6,720 $9,037
      Nevada $965 $2,360 $3,325

      Compared to Nevada, a property must generate substantially more cash flow just to offset higher operating costs:

      • Florida: Requires an additional $11,311 per year ($14,636 - $3,325).
      • Texas: Requires an additional $5,712 per year ($9,037 - $3,325).

      The takeaway is simple: operating costs have a major impact on long-term cash flow. A city with lower taxes and insurance gives you a significant advantage before you ever collect the first month's rent.

      @Eric Fernwood This is such a gold mine. We've been thinking about buying rentals out of state but haven't had time to do enough research. I appreciate this type of knowledge drop.

      As someone also in CA, I'd love to connect with the others here. 

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  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    3mo

    A lot of investors based in markets like California are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

    Prices are still low enough to find 1% rule deals and there's a ton of appreciation happening in certain markets as well. I actually moved from Florida to Ohio for the real estate. I saw how fast the market was growing and decided to make the jump.

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
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    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  

    Hi Roman, welcome back to BP! Sounds like you already have a pretty balanced approach. I personally like focusing on markets with a combination of cash flow, landlord-friendly laws, and strong long-term economic growth rather than chasing the absolute highest yields. That's one of the reasons I like Columbus, Ohio. The macroeconomics are really strong here with population growth, job growth, and major employers continuing to expand in the area. Companies like Intel, Amazon, Google, Microsoft, Honda, LG, and Anduril are bringing a lot of jobs and investment to the region. My buy box tends to be affordable single-family homes and small multifamily properties in areas with stable rental demand where the numbers work on day one. One thing I like about Columbus is that you can still find properties in the roughly $120k-$180k range that come close to or meet the 1% rule while also having solid appreciation potential. For investors who aren't trying to build a huge portfolio and just want a handful of dependable rentals, I think finding that balance between cash flow and long-term growth is more important than maximizing yield alone. Happy to connect and answer any questions you have!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  

    I am investing OH for the last few years and own + units here. Happy to connect!

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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    0Reply
  • Samantha Golden-White
    Real Estate Agent · Kansas City, MO · Member since 2017 · 1 post · 1 vote
    3mo

    Kansas City, Missouri is a great market to invest in because the barrier to entry is still relatively low compared to many other markets, while rents remain strong enough to generate attractive returns. That said, success here really comes down to working with knowledgeable local partners. The right property isn't just about price—it's about the condition, size, neighborhood, school district, and sometimes even the specific block.

    I'm a local Realtor specializing in property management and tenant placement, with approximately 90% of my clientele consisting of out-of-state investors. I've helped place hundreds of families in homes throughout the Kansas City area and have extensive experience assisting investors with everything from acquisitions and make-ready rehabs to contractor coordination and lease-up.

    For investors looking at Kansas City, I believe having boots on the ground and trusted local relationships is critical to maximizing returns and minimizing surprises.

    1Reply
  • Terri Beard
    Realtor · AL · Member since 2026 · 4 posts · 1 vote
    3mo

    Hi! I’m boots-on-the-ground in Central Alabama. If you ever want local deal flow or property analysis, I am happy to connect.

    0Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    3mo

    Ohio is a great call, and from my experience, Columbus specifically keeps showing up for out-of-state investors because the price points are still reasonable and rental demand stays consistent. 

    [email protected]614-490-1163
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  • Terri Beard
    Realtor · AL · Member since 2026 · 4 posts · 1 vote
    3mo

    I’m boots-on-the-ground in Birmingham,Alabama. If you ever want local deal flow or property analysis, happy to connect.

    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  


    I’m similar in that I’d rather own a handful of solid properties than hundreds of doors. Lately, I’ve been paying the most attention to Midwest markets where the balance between cash flow, affordability, and long-term stability still exists. My buy box is usually value-add single-family homes and small multifamily properties in working-class neighborhoods with strong rental demand, where I can either force appreciation through light rehab or buy below market value. For out-of-state investing, I’ve found that having the right team matters more than finding the "perfect" market. A good agent, contractor, and property manager can make an average market perform better than a great market with no local support.
    [email protected]614-418-6081
    0Reply
  • Ayomide Olaniyan
    Specialist · United States · Member since 2026 · 12 posts · 2 votes
    3mo

    Hey Roman, great track record across CA, OH, and MN. If you are looking for yield without the empire-building overhead, parts of the Southeast-specifically the Huntsville, AL and Greenville, SC submarkets are still showing strong rent-to-price ratios for out-of-state capital. Happy to share some of the macro data we are tracking there if you want to narrow down your next market.

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3mo

    @Roman Ripp

    I have been quite successful in Houston, Texas due to the employment, population, and landlord friendly nature of the market. My buy box is normally cash flowing single family and small multifamily residential properties located in stable working class neighborhoods where the deal works from day one and there is upside potential in rental prices.

    Good luck!

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  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  


     Stick to where you know is my advice. I understand adversity, but I would buy some more in the markets you know before going else where

    [email protected]859-443-4952
    Sam McCormack Realtor
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  • Allie McAlister
    Memphis, TN · Member since 2024 · 180 posts · 223 votes
    3mo

    Hey @Roman Ripp

    We work with a lot of CA investors that come to Memphis because of the high rent to price ratios. The entry point here is low which makes it a very easy market to get started in. We've got all of the contacts you need to build your team. Happy to set up a call to give you more details!

    Best of luck!

    1Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    3mo

    KC is great!

    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    3mo

    Hi Roman, I currently own investment properties in Columbus, Cleveland, and Springfield. My Columbus and Cleveland properties are a mix of single-family and multifamily rentals, while my Springfield property is a value-add project. I'm currently renovating one of the units there.

    Right now, my buy box is primarily turnkey, move-in-ready properties or properties that require only minimal rehab in C-class neighborhoods. I focus on 1-4 units at the moment. I prefer deals that don't require major renovations but still offer opportunities for rent growth and long-term appreciation.


     

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  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 331 votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  


    Welcome to BiggerPockets! I invest primarily in Memphis, and my buy box is built around cash flow first. I focus on single-family homes, duplexes, triplexes, and quadplexes, primarily in the Memphis market and surrounding North Mississippi areas. For single-family homes, I typically target 3/1, 3/1.5, 3/2, and 4/2 floor plans with at least 1,000 square feet and rents of $1,000+ per month. I prefer brick properties on slab foundations built in 1950 or newer, avoid pools and busy streets, and generally look for ARVs above $100K. I also prefer properties that are vacant at closing or have month-to-month tenants in place, and I like markets where I can close quickly if the numbers make sense. The reason I continue to invest in Memphis is because it's one of the few major markets where you can still find properties that hit the 1% rule while maintaining strong rental demand and affordability. Even if your goal isn't to build a massive portfolio, having a few well-selected cash-flowing properties can provide a tremendous amount of financial security. I’d also recommend spending time analyzing ARVs, rents, and market trends and learning the layout of the neighborhoods you're targeting so you truly understand what you're buying. And regardless of market, having a strong boots-on-the-ground team is critical—an investor-friendly agent who also owns rentals, a solid property manager, a reliable general contractor, and the right lending contacts can make all the difference. Feel free to reach out, talk soon!

    [email protected]662-642-1458
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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3mo
    Quote from @Roman Ripp:

    I have been investing out of state (CA is home) for several years now. I am not looking to build an empire, just a few high yield homes I can rely on in case of emergency. So far I am in CA, OH and MN. Question for the community: where do you invest and what is your buy box?  

    Good question @Roman Ripp. Find a good market in the midwest where your investments would make sense from both cashflow vs. appreciation.

    You want a market that is tech driven, landlord friendly, and affordable. That will mean more jobs, more income, higher property prices, and better opportunity for your rental to perform better.

    Any state in the midwest works. Find a major city and only invest there. Connect with a good investor-focused agent who is also an investor themselves. Have him connect you with his team of contractors, lenders, property managers. Go visit the market.

    Your agent will send you good investment opportunities off-market and on-market. Ask for rent comps, sales comps, info on mechanicals, and have agent find out how far on the price you guys can go to make it make sense.

    Get inspection/contractor walkthrough, speak to PM on rents, and that is all.

    [email protected]614-802-5698
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  • Noor Shams
    Wholesaler · Member since 2026 · 15 posts · 4 votes
    3mo

    GA and FL have been solid for us — Atlanta metro suburbs for appreciation play, Central FL for cash flow. TX (DFW/San Antonio) still has legs too. Key is finding boots on the ground — a good local agent or contractor who knows what's actually moving changes everything.

    0Reply
  • Garret Rumbea
    Inland Empire, CA · Member since 2017 · 151 posts · 79 votes
    3mo

    Hey@Roman Ripp good to meet you. My partners and I are based out of SoCal and invest out of state in larger multifamily. Always happy to connect with local peers. 

    0Reply
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