New Out-of-State Investor, What Markets Should I Research?
Los Angeles, CA · Member since 2026 · 5 posts · 15 votes
New Out-of-State Investor, What Markets Should I Research?
Most Popular Reply
Josh HandlerPro Member
Contractor · Memphis, TN · Member since 2026 · 72 posts · 84 votesHarold, notice what's happened in this thread in 24 hours. You asked which market to research and you got Kansas City twice, Ohio, Oklahoma City, Memphis, and South Florida tax deeds. Every one of those answers came from somebody who earns a living in that market. None of them are lying to you. It's just that the question "which market" mostly gets answered by people who are already in one.
I'm a contractor rather than an agent, so I don't have a market to sell you. I'd rather give you the thing that actually decided the outcome for most of the out-of-state owners I've met.
It usually isn't the market. It's the house.
I've walked houses two blocks apart, same city, same rent, bought within a few thousand dollars of each other, where one owner is fine and the other is deep underwater on repairs that were sitting there at closing. Same market, same team, different result. The variable was the age and condition of the structure and the mechanicals, and neither buyer had priced it before they were committed.
So here's what I'd add rather than replace.
Learn to read a house before you learn to read a market. Year built tells you more about your first three years of ownership than the zip code does. Pre-1965 usually means cast iron drain lines and galvanized supply near the end of their life plus an undersized panel. Late 1970s means checking for aluminum branch wiring. 1980s means polybutylene supply. 1990s and newer means the structure is fine and the systems are the story, so HVAC, water heater, and a roof on its second life. None of that is a reason to avoid anything, it's a reason to know what you're buying.
Size your capital against the work, not the purchase price. New investors budget to the down payment and keep almost nothing back. The ones who get hurt usually didn't buy in a bad market, they had no reserve when the sewer line failed in month four.
And two checks before you close anywhere, in any market: a sewer scope on anything pre-1970, and somebody pulling the cover off the electrical panel. A few hundred dollars, and it's where the five-figure surprises live. Most general home inspectors do neither.
Full disclosure so you can weigh it: I run a construction company and own rentals myself, so I see this from the repair side and that colors my view. But you're going to be handed a lot of market opinions over the next few months and almost nobody is going to tell you to underwrite the building itself.
One practical suggestion. Whatever two or three markets you land on, find a contractor in each and ask them to walk a house you're seriously considering during your inspection period. Plenty will do it for free or close to it, because that's how we meet clients. You'll learn more in an hour with someone who has to actually fix the thing than in a month of spreadsheets.
44 Replies
- Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes1mo
If you explore Kansas City I am happy to chat
- Los Angeles, CA · Member since 2026 · 5 posts · 15 votes1mo
Thanks Caleb, I appreciate it. Kansas City is definitely a market I’d like to learn more about. I’d be happy to connect and hear about your experience investing there and which areas you think are worth focusing on.
- Member since 2023 · 19 posts · 3 votes1mo
Quote from @Harold Yam:
Thanks Caleb, I appreciate it. Kansas City is definitely a market I’d like to learn more about. I’d be happy to connect and hear about your experience investing there and which areas you think are worth focusing on.
I'd highly recommend Caleb! I am a local lender in KC and have done many deals with him. Great agent that strictly works with investors.
- 1moMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
I would be thrilled to connect and discuss investment opportunities in the Kansas City, Missouri market.
- Los Angeles, CA · Member since 2026 · 5 posts · 15 votes1mo
Thanks Mackaylee! I’d definitely be interested in connecting and learning more about the Kansas City market. I’m especially interested in understanding which neighborhoods you like for long-term rentals, typical cash flow, and what you’re currently seeing in the market.
- Coral Springs, FL · Member since 2018 · 495 posts · 111 votes1mo
Harold, with $150K looking to go out-of-state, most advice you'll get is "pick a cash-flowing market and find a turnkey property." That works, but there's a better approach that most people overlook: **your acquisition strategy matters more than your market selection.**
Here's what I mean. Two investors can buy in the same neighborhood — one pays $400K through the MLS and cash flows $250/month. The other buys the same property at a tax deed auction for $260K and cash flows $950/month. Same property, same rent, same neighborhood. The difference is how they acquired it.
I'm in South Florida and I've been focused on Broward County tax deed auctions. Here's why this matters for someone in your position:
**1. The discount is built in.** Properties sell at 50-70% of assessed value because most bidders don't do the analysis. A property assessed at $400K might open at $240K-$280K. That's $120K-$160K in instant equity before you spend a dollar on rehab.
**2. It solves the out-of-state problem.** The biggest risk of remote investing is trusting the seller, the inspection, the appraisal, the lender. Tax deed acquisitions eliminate all of that. The county sells it, you pay cash, you own it. No seller backing out, no appraisal killing the deal, no lender dragging their feet.
**3. $150K is enough capital.** Broward has single-family homes in the $200K-$350K range at auction. You need a 5% deposit to bid, and the balance closes in about 30 days. Your capital covers 1-2 properties with reserves for light rehab.
**4. The process is transparent.** Broward County publishes the full property list, assessed values, and lien amounts weeks before the auction. You can research everything from your laptop in California — property records, rental comps, rehab estimates — before you ever bid.
Broward County has Tax Deed Auction #113 on October 26, 2026 with 16 properties — mix of single-family and condos, several with significant equity spreads. I've been analyzing the inventory and putting together deal packets with assessed values, opening bids, estimated rents, and rehab ranges.
Happy to share the analysis if you want to see what the numbers look like on specific properties. It's a different way to think about out-of-state investing — instead of picking a market and hoping for cash flow, you're creating equity at the point of acquisition.- Member since 2025 · 31 posts · 21 votes1mo
Wouldn't recommend buying anything that can't be fully inspected beforehand for a beginning investor.
- 1moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 956 votes
Quote from @Harold Yam:
Hi everyone! I’m new to real estate investing and looking to learn as much as I can before putting my capital to work.
I currently live in California and am interested in becoming an out-of-state investor. I have approximately $150K in capital available to invest, but I want to take the time to educate myself, understand different markets, and learn from experienced investors before making my first investment.
I’d especially love to connect with other out-of-state investors who have gone through the process of investing remotely and can share what they’ve learned, both what worked and what they wish they knew before getting started.
I’m also curious to hear everyone’s thoughts on markets that may be worth researching for a first-time out-of-state investor with around $150K to invest.
If you’ve invested out of state, what markets would you recommend looking into, and why?
Looking forward to learning from the community and connecting with other investors!
Hey Harold, with $150K to invest, I’d definitely look beyond California and compare some Midwest markets before making your first move. The Midwest market has some affordable entry points and solid cash flow potential, and you can invest remotely with the right local team. For a first deal, I’d focus on the numbers and the neighborhood more than chasing the hottest market.
- Eureka, CA · Member since 2026 · 3 posts · 1 vote1mo
Hi Harold, welcome! I’m also based in California and recently joined BiggerPockets. I’m in Humboldt County and am especially interested in what gives investors confidence when evaluating an unfamiliar market. As you compare locations, how heavily are you weighing the strength of the local property-management team alongside cash flow, appreciation potential, and entry price? I’d be interested to follow what you learn. :-) Tai
- Rental Property Investor · Member since 2026 · 56 posts · 29 votes1mo
Hey Harold, I can share some great tools I use for identifying the best markets for cash flow and appreciation. Send me a message if interested!
- 1moJoe PryorBusiness MemberReal Estate Broker · Oklahoma City · Member since 2026 · 14 posts · 10 votes
I have been working with out of state and out of country investors for the last 22 years. Remote control investing can be successful but you need to find turnkey solutions to keep this passive income. Here are my suggestions. Find agents who can properly educate you especially in calculating return on investment. If they can't do that for you then you are flying blind and that is a bad way to fly. Secondly, visit the market if you can although that may not be necessary and if you visit multiple markets that can get expensive so get this down to a precious few. Make sure that it is a turnkey solution which means you need to talk to the recommended property manager before you buy anything. What I do is translate investments to paper, what a property manager does is reality and trust me there are more bad property managers than good ones and very few excellent ones. Avoid the ones giving you like false promises like we guarantee a tenant accepted in two weeks. That means that you probably get a bad tenant and that is a very bad event. The agent should have good recommendations for lenders, insurance agents, inspectors, etc. Remember that a good agent understands that since they are not lawyers or CPAs they can't render anything other than opinions and once they reach that limit then they tell you to seek out a professional for questions like should I form an LLC or a trust? The more questions you ask the safer you will feel about buying wherever. My one last suggestion is to start with a single property that does not use up all your discretionary income. Once you get the drill down and hopefully are successful with your first, then you can continue with more.
- 1moJames WachobBusiness MemberReal Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
Hey @Harold Yam ! Welcome to BiggerPockets! With $150K available, I think taking the time to learn and understand the numbers before deploying the capital is exactly the right approach. There’s no need to rush into the first property just because you have the funds available.
For out-of-state investing, I'd focus less on finding the "hottest" market and more on finding a market where the numbers work and where you can build a reliable local team. Look at purchase prices, realistic rents, taxes, insurance, vacancy, maintenance, CapEx, and property management before deciding whether a market makes sense.
I’d also recommend picking 2–3 markets to study deeply rather than trying to research the entire country. Analyze actual deals every week and start talking with local agents, property managers, lenders, and investors. That process will teach you a lot before you ever make an offer.
I’m a real estate agent based in Memphis, TN, and I work with out-of-state investors who are building long-term rental portfolios. Memphis is one market I’d encourage you to put on your research list if cash flow and a lower entry point are priorities.
If you ever want to explore Memphis, compare numbers, or just talk through what remote investing looks like from the investor side, I’d be happy to connect and help however I can. Good luck with the research!
- 1moJosh HandlerPro MemberContractor · Memphis, TN · Member since 2026 · 72 posts · 84 votes
Harold, notice what's happened in this thread in 24 hours. You asked which market to research and you got Kansas City twice, Ohio, Oklahoma City, Memphis, and South Florida tax deeds. Every one of those answers came from somebody who earns a living in that market. None of them are lying to you. It's just that the question "which market" mostly gets answered by people who are already in one.
I'm a contractor rather than an agent, so I don't have a market to sell you. I'd rather give you the thing that actually decided the outcome for most of the out-of-state owners I've met.
It usually isn't the market. It's the house.
I've walked houses two blocks apart, same city, same rent, bought within a few thousand dollars of each other, where one owner is fine and the other is deep underwater on repairs that were sitting there at closing. Same market, same team, different result. The variable was the age and condition of the structure and the mechanicals, and neither buyer had priced it before they were committed.
So here's what I'd add rather than replace.
Learn to read a house before you learn to read a market. Year built tells you more about your first three years of ownership than the zip code does. Pre-1965 usually means cast iron drain lines and galvanized supply near the end of their life plus an undersized panel. Late 1970s means checking for aluminum branch wiring. 1980s means polybutylene supply. 1990s and newer means the structure is fine and the systems are the story, so HVAC, water heater, and a roof on its second life. None of that is a reason to avoid anything, it's a reason to know what you're buying.
Size your capital against the work, not the purchase price. New investors budget to the down payment and keep almost nothing back. The ones who get hurt usually didn't buy in a bad market, they had no reserve when the sewer line failed in month four.
And two checks before you close anywhere, in any market: a sewer scope on anything pre-1970, and somebody pulling the cover off the electrical panel. A few hundred dollars, and it's where the five-figure surprises live. Most general home inspectors do neither.
Full disclosure so you can weigh it: I run a construction company and own rentals myself, so I see this from the repair side and that colors my view. But you're going to be handed a lot of market opinions over the next few months and almost nobody is going to tell you to underwrite the building itself.
One practical suggestion. Whatever two or three markets you land on, find a contractor in each and ask them to walk a house you're seriously considering during your inspection period. Plenty will do it for free or close to it, because that's how we meet clients. You'll learn more in an hour with someone who has to actually fix the thing than in a month of spreadsheets.
- Member since 2019 · 11 posts · 2 votes1mo
Very solid advice! Have learned the hard way on some of the things mentioned.
Josh,
You provide an extremely unique and valuable perspective here and I am glad you did. Many real estate investors focus heavily on "Markets" but often overlook the costs of repairs and upkeep of properties in said markets. Your valuable advice about walking properties with a contractor is top notch and the necessary due diligence an investor should do.
I am not a contractor myself but my father was. I am an agent and investor in FL. It's essential for an Investor to think both like an investor (obviously) and a contractor and understand where they intersect. Those actions will better equip investors to make more sound and in-depth decisions on the properties that are choosing to invest in.Thanks for the value add perspective.
- 1moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Harold Yam:
Hi everyone! I’m new to real estate investing and looking to learn as much as I can before putting my capital to work.
I currently live in California and am interested in becoming an out-of-state investor. I have approximately $150K in capital available to invest, but I want to take the time to educate myself, understand different markets, and learn from experienced investors before making my first investment.
I’d especially love to connect with other out-of-state investors who have gone through the process of investing remotely and can share what they’ve learned, both what worked and what they wish they knew before getting started.
I’m also curious to hear everyone’s thoughts on markets that may be worth researching for a first-time out-of-state investor with around $150K to invest.
If you’ve invested out of state, what markets would you recommend looking into, and why?
Looking forward to learning from the community and connecting with other investors!
@Harold Yam Good work on getting started. Find a different market where it is landlord-friendly, your dollar goes much further, and where there is tech, job, and population growth.
Connect with an investor agent. Have him connect you with his team of lenders, contractors, property managers. Look at off-market deals and buy them 80-85% of its true-value in turnkey shape or buy them at 75% of ARV for BRRRR/Flip deals.
Make sure to watch out for location, condition (Roof, HVAC, hot water tank, electrical, foundation, and sewer scope), and rentability.
When you re-finance, make sure deal cashflows and breaks even.
ReafCo | Ahmed Group 539 Reviews - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1mo
Quote from @Harold Yam:
Hi everyone! I’m new to real estate investing and looking to learn as much as I can before putting my capital to work.
I currently live in California and am interested in becoming an out-of-state investor. I have approximately $150K in capital available to invest, but I want to take the time to educate myself, understand different markets, and learn from experienced investors before making my first investment.
I’d especially love to connect with other out-of-state investors who have gone through the process of investing remotely and can share what they’ve learned, both what worked and what they wish they knew before getting started.
I’m also curious to hear everyone’s thoughts on markets that may be worth researching for a first-time out-of-state investor with around $150K to invest.
If you’ve invested out of state, what markets would you recommend looking into, and why?
Looking forward to learning from the community and connecting with other investors!
I'm a big fan of investing near home if possible or relatively near by. Going way across the country seems like a "good" move because sometimes the houses seem cheaper, but with the number of posts from people that have tried to, and regretted it, it just makes more sense to me to start someplace close by.
- 1moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
I would personally invest in the midwest for an easy entry, stable cash flow and growth
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1mo
Investing OOS is hard. I have seen many try - and best case, they got mediocre results. OOS compete with local investors. Anything you do remote is harder and costs more. You have an additional cost burden and management inefficiencies, because you can't be there to look. You have to pay someone else and then rely on their opinion. Bottom line it comes out to a 20%-ish cost premium.
How can you close the gap? Find a market you have knowledge in and/or is easy to travel to. Maybe a city you already lived in, or have family there. Narrowing the gap will have a much better impact than picking a "better" market.
- 1moAdam TafelBusiness MemberReal Estate Agent · St. Paul, MN · Member since 2017 · 592 posts · 402 votes
Consider buying a short term rental somewhere in a growing vacation destination so you actually have excuse to check in on the place, and be very careful who you get cashflow projections from (ideally current hosts rather than just an agent/broker). A duplex won’t give you the cashflow necessary to fly into town and check in on it.
Upside Property Sales 4.9108 Reviews - 1moEric AugustynPro MemberInvestor · Chicago, IL · Member since 2017 · 14 posts · 31 votes
Harold - Welcome to the fun journey of real estate. I have been an out out state investor for the majority of my purchases. A lot of great advice on this thread and in the forum, but I would add the following. Finding the right property manager is everything. If one of my property manages moved cities, I would start investing wherever they moved to. If you deploy 150k in another city, a PM is essentially managing 150k of your money along with the returns it produces. Make sure you find someone or a company you trust.
- 1moDave MeyerPro MemberHead of Real Estate Investing at BiggerPockets · Seattle, WA · Member since 2015 · 355 posts · 829 votes
Harold -- this is a great question and one I see a lot of investors get bogged down in. There are tons of great markets across the country, and most of them there is a strategy that works. Even expensive markets have ways to be successful.
If you're intent on OOS investing (which is great, I do it!), I would start by finding 5-10 markets to create a short-list. These markets should align with your long-term goals (cashflow vs. appreciation, etc.). If you want some great places to start in the midwest (which I am a fan of), think places like: Indianapolis, Kansas City, Milwaukee, Chicago, Columbus, Cleveland, etc.
Once you have this short list the key is building your team as @Eric Augustyn mentioned. Since there is no perfect market, if you're picking one of the many good markets, the difference in your performance will be team -- primary agent and PM, and potentially contractors if you're going to do value add investing.
Talk to 3-5 PMs and Agents in each of your target cities, and move your list down to 2-3 markets with strong team potential. Then -- GO! Get on a plane and fly to these cities. Meet the teams in person, walk properties, get a feel for the place. The goal isn't to buy something on these trips, its to make sure the team is what you want, and its a place you can see yourself investing for a long time. I've gone to many cities intent on buying there, only to not like the housing stock, the vibe, the infrastructure, whatever. You're an investor -- invest the time and money into visiting the markets.
Then, go for it! Goodluck.
- 1moDiana KhanPro MemberAttorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 192 votes
Quote from @Harold Yam:
Hi everyone! I’m new to real estate investing and looking to learn as much as I can before putting my capital to work.
I currently live in California and am interested in becoming an out-of-state investor. I have approximately $150K in capital available to invest, but I want to take the time to educate myself, understand different markets, and learn from experienced investors before making my first investment.
I’d especially love to connect with other out-of-state investors who have gone through the process of investing remotely and can share what they’ve learned, both what worked and what they wish they knew before getting started.
I’m also curious to hear everyone’s thoughts on markets that may be worth researching for a first-time out-of-state investor with around $150K to invest.
If you’ve invested out of state, what markets would you recommend looking into, and why?
Looking forward to learning from the community and connecting with other investors!
@Harold Yam, you’ve gotten a lot of good advice here about markets, teams, and property condition. One thing I would add from the legal side is to understand what it will actually be like to own rental property in that state before you buy there.
Working with landlords and investors, I’ve learned that two properties with similar numbers can feel very different to own because of the local rules.
Before I chose a market, I would want to know things like: Does the city require a rental license or inspection? What happens when a tenant stops paying? Are there special notice rules? Are there local rules that affect how you can use or manage the property? And if something does go wrong, do you already know who your local attorney will be?
I would also make sure the title and ownership side is clean before closing. When you are investing from across the country, fixing a title, lease, or ownership problem later becomes much harder.
The market still has to make financial sense, but I’ve seen that the easiest property to own is usually the one where you understand the rules before you become the owner.
Since every state is different, I would have local counsel in whatever market makes your final list.
Hey Harold! Welcome to real estate investing. I think taking the time to learn the market and build the right team before investing is a great approach. There are some good markets worth researching in the Midwest, especially for out-of-state investing. Happy to share some insights if helpful!
- 1moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
A common issue, so Copy & Paste info below:
You’re ALWAYS better off investing locally, where it’s easier to:
· Learn the market
· Network to find deals
· Network to find contractors
· Be more hands-on
· Driveby property to keep tabs on it
· Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully building a knowledgeable & trustworthy local team.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
· Many of them don't know/care what Class the properties are, so they're incompetent.
· Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood/Market”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
What do you think will happen if you rehab a Class D rental to Class A standards?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
Property Tenant Pool: closely linked to location, but not always.
Property Location: closely linked to tenant pool, but not always.
Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood/Market.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.
Horror Stories from those that did NOT Understand What they were Buying:
Logical Property Management4.9460 Reviews - 1moBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
“Out of state” can mean a lot of things—it’s really just a line on a map. The better question is: How far away do you need to go to solve the problems in your local market without creating a whole new set of problems?
A common example is California. Prices and cash flow can make investing locally difficult, so investors immediately start looking at the cheapest markets in the Midwest. That may solve the affordability problem, but now you’ve created new challenges: distance, unfamiliar neighborhoods, property management, and not being able to easily check on the property when something goes wrong.
Start closer to home and work outward. Look for the closest market that solves your biggest investment problem without creating another major one.
Start with places you know—or places you’d actually want to spend time in—and then study the fundamentals: Population and job growth, Major industries and employers already established (not they are going to build a factory here), New construction and housing supply, Rent growth, Home price appreciation, Vacancy trends.
Pay particular attention to supply. If new subdivisions and apartments are going up every 10 miles, future competition matters. Texas, I’m looking at you.
There’s also nothing wrong with factoring lifestyle into the decision. If you enjoy a particular city or region, owning there gives you another reason to stay connected to the market.
At the end of the day, investing isn’t only about finding the highest cap rate. Look at the numbers, the economic fundamentals, the amount of energy you want to put into managing the investment, and what you want your portfolio to look like five years from now.
Pick a market that matches your numbers, your goals, and your “why”—not simply the cheapest market you can find.
- 1moGregory AcsPro MemberLender · MD · Member since 2025 · 212 posts · 84 votes
I think you're taking the right approach by researching before putting your capital to work. Instead of starting with a specific market, I'd first decide what type of investment you're looking for, whether that's cash flow, appreciation, BRRRR, or long-term growth. That will narrow your search considerably. I'd also spend time understanding your financing options early, because they'll influence your buying power and the types of deals that make the most sense for your goals.
- Real Estate Consultant · Dubai · Member since 2026 · 26 posts · 9 votes1mo
@Harold Yam It is surprising how many agents, contractors and advisors kept mentioning the same thing.
Price, aqusition cost, appraisals, maintenance, rehabs and location. All major aspects of course.
However, none of them mentioned the management part. That is the one that sustains your property or not.
At what price will you value your ease of mind? with our properties that are 10% contracted ROI for 10 years, you worry about nothing. Our history and investors back it up.
It is the ultimate answer for investors that are looking for properties income, capital appreciation while they spend their time vacationing.
Let's discuss it.
- 1moRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
Colorado Springs investor here, so yes, I'm about to recommend my own market. But the reason isn't cashflow, it's rate arbitrage.
With $150K, you can close the equity gap on an assumable FHA or VA loan and take over a rate between 2.75% and 3.5%. Those loans are sitting on the MLS right now because most buyers don't know they're assumable.
Here's what the math looks like. $530K home, $380K remaining VA loan at 2.75%. Your equity gap is $150K. You cover it at closing. Year one principal paydown runs about $12K on that balance. On $150K invested, that's 8% before any appreciation or rent. And you're paying $1,650/month PITI versus $2,625/month on a new loan at current rates. That $975/month gap is what makes a rental pencil or keeps your holding cost low while you build equity.
Most out-of-state investors never see this option because their agent doesn't know how to do assumptions.
The process: 45-90 days, $750/side, lender fully involved. This is not subject-to. It's legal and clean and the lender signs off on every one.
DM me if you want to run the numbers on a specific property type or price range in the Springs.
The Assumable Guy544 Reviews - Inland Empire, CA · Member since 2017 · 151 posts · 79 votes1moHey Harold, good to meet you. What part of CA are you in? My partners and I are based out of SoCal. We invest in larger multifamily primarily in DFW but we always try to connect with locals. Happy to connect if you’re open to it
Great approach @Harold Yam. Having $150K available is a strong starting point, but taking the time to understand the market and your investment strategy before deploying it is just as important.
From a lender’s perspective, I’d encourage you to build your team before you buy your first property—especially when investing out of state. A good local Realtor, property manager, contractor, insurance agent, and lender can help you evaluate a deal from multiple angles before you put your capital at risk.
One thing I’ve learned working with investors is that the best financing strategy starts before the property is under contract. Understanding your acquisition budget, leverage, rehab costs, projected ARV or rental income, reserves, and exit strategy can help you determine whether a deal actually makes sense.
With $150K, you may also have opportunities to use leverage strategically rather than putting all of your capital into one property. The goal isn’t simply to buy a property—it’s to structure the first investment in a way that preserves enough liquidity to take advantage of the second opportunity.
Take your time, analyze plenty of deals, and don’t be afraid to ask lenders what they would need to see for a deal to make sense. You can learn a lot by underwriting deals on paper before ever risking a dollar.
Best of luck with the journey! There are some great opportunities for disciplined out-of-state investors right now.
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