New invester seeking guidance on best market/location to invest

[Vivek Srinivas]

Hi BP community,

I’m new to real estate  investment and looking to purchase my first rental property. While I live in Maryland, I’m open to investing out of state if it makes more sense financially.

I used to live in Dallas,Texas  prior moving to MD, hence I am familiar with the DFW area and have a local realtor there as well. Though I have considered TX for investing, the high property taxes give me pause. I’d like to find a market that strikes a balance between cash flow and long-term stability, and I plan to work with a local property manager since I won’t be self-managing.

Here’s what I’m looking for:

• Budget: Up to $350K
• Strategy: Buy-and-hold rental, preferably turnkey or close to it
• Goals: Solid cash flow and equity growth potential
• Requirements: Landlord-friendly laws, low to moderate property taxes, growing or stable job market

I’d love recommendations from experienced investors about:

• Cities or neighborhoods you’ve had success in
• Tips for vetting property managers remotely
• Things you wish you knew before buying out of state

Thanks in advance for your guidance. Excited to learn from this community and looking forward to interact with other investors here!

[Melissa Justice]

@Vivek Srinivas,

Welcome to the community & great questions!

Your criteria is clear and smart, especially for a first out-of-state buy-and-hold. Given your budget, goals, and experience living in Texas, you're already ahead of the game.

If you’re concerned about Texas property taxes (understandably so), you might want to look at markets that offer stronger cash flow, lower taxes, and landlord-friendly laws without sacrificing long-term stability. Here are a few markets that check those boxes and are popular among turnkey and out-of-state investors:

Birmingham, AL – Affordable entry prices, solid rent-to-price ratios, and a stable job market. Great for turnkey single-family or small multifamily.

Memphis, TN – Consistently high cash flow with a large pool of property managers and vendors. Taxes are reasonable and laws favor landlords.

Akron, OH – One of the best-kept secrets in the Midwest. Low home prices, decent rent returns, and strong turnkey infrastructure.

South Bend, IN – Home to Notre Dame and a growing rental market. Very investor-friendly, especially for those new to out-of-state rentals.

Locust Grove, GA – A growing area just outside Atlanta with new-build and turnkey options. Solid appreciation and tenant demand.

Each of these markets has active turnkey providers and property managers who work specifically with out-of-state investors. When vetting PMs remotely, I’d recommend:

Asking for current client references

Reviewing their lease agreements, fee structure, and communication process

Checking online reviews (but take them with a grain of salt)

Interviewing more than one before making a decision

Things I wish I knew before investing out of state? Don’t chase cap rate alone—make sure the neighborhood, tenant base, and local team (especially your PM) are just as strong. A mediocre deal in a stable market with a great team will outperform a great deal with a bad team every time.

You’re in a great position to get started! Feel free to reach out if you need any help. 

Best of luck,

Melissa