Joining Bigger Pockets so I can make bigger investments!
Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes
Joining Bigger Pockets so I can make bigger investments!
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votesWelcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!
Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.
A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:
- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem.
- South Bend, IN – Underrated market with solid returns and affordable small multifamily options.
- Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market.
- Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.
If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.
Happy to help or answer any other questions!
Best of luck,
Melissa
32 Replies
- Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes1y
@Valerie Peabody congrats on post # 1. There are lots of ways in real estate to make passive income but it comes down to if you are willing to exchange up your money for someone else's time? If you find a home on your own and place it with a Property Management company you will need to determine how much to rent it for, how to get it rented, etc. You can have the company do this for you after you purchase but that introduces some additional risk into your investment.
Another way to do this is to find a partner/company that renovates and places the residents in the home before you purchase. Are you going to give up some portion of return for this service, potentially, but you also just took all of your major unknown variables out of the rental equation. If you go this path, I recommend you purchase in solid performing area with the median price point. Too low of price point looks great on paper but typically ends up being a headache and money pit. Too high of price point may be good for appreciation but there is an inflection point that rents no longer track linearly with home price. In my experience that is around $275-$300k. Over that price in the markets I work with your rent/price ratio starts dropping.
Hope that was helpful! Happy to chat anytime- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Jared Smith:
@Valerie Peabody congrats on post # 1. There are lots of ways in real estate to make passive income but it comes down to if you are willing to exchange up your money for someone else's time? If you find a home on your own and place it with a Property Management company you will need to determine how much to rent it for, how to get it rented, etc. You can have the company do this for you after you purchase but that introduces some additional risk into your investment.
Another way to do this is to find a partner/company that renovates and places the residents in the home before you purchase. Are you going to give up some portion of return for this service, potentially, but you also just took all of your major unknown variables out of the rental equation. If you go this path, I recommend you purchase in solid performing area with the median price point. Too low of price point looks great on paper but typically ends up being a headache and money pit. Too high of price point may be good for appreciation but there is an inflection point that rents no longer track linearly with home price. In my experience that is around $275-$300k. Over that price in the markets I work with your rent/price ratio starts dropping.
Hope that was helpful! Happy to chat anytimeHi Jared,
Thanks for your response. We have homes in North Alabama, and I'd be interested to hear your take on Tennessee. We have relatives in AL, so we can figure out the renovation aspect if needed in that area. We also have management out there. If we go to a different area though, we would need someone to manage and work on any new properties. I am willing to look out of our area to find deals.
I appreciate you reaching out. I felt very much like I was all on my own until I found BiggerPockets and you and so many others have reached out to guide me.
Thank you,
Valerie Peabody
- Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes1yI would love to share some perspective and you are exactly right that there are lots of folks here to help. I like all of the BP authored books that I have read as well. Hit me up on my link to connect.
Quote from @Valerie Peabody:
Quote from @Jared Smith:
@Valerie Peabody congrats on post # 1. There are lots of ways in real estate to make passive income but it comes down to if you are willing to exchange up your money for someone else's time? If you find a home on your own and place it with a Property Management company you will need to determine how much to rent it for, how to get it rented, etc. You can have the company do this for you after you purchase but that introduces some additional risk into your investment.
Another way to do this is to find a partner/company that renovates and places the residents in the home before you purchase. Are you going to give up some portion of return for this service, potentially, but you also just took all of your major unknown variables out of the rental equation. If you go this path, I recommend you purchase in solid performing area with the median price point. Too low of price point looks great on paper but typically ends up being a headache and money pit. Too high of price point may be good for appreciation but there is an inflection point that rents no longer track linearly with home price. In my experience that is around $275-$300k. Over that price in the markets I work with your rent/price ratio starts dropping.
Hope that was helpful! Happy to chat anytimeHi Jared,
Thanks for your response. We have homes in North Alabama, and I'd be interested to hear your take on Tennessee. We have relatives in AL, so we can figure out the renovation aspect if needed in that area. We also have management out there. If we go to a different area though, we would need someone to manage and work on any new properties. I am willing to look out of our area to find deals.
I appreciate you reaching out. I felt very much like I was all on my own until I found BiggerPockets and you and so many others have reached out to guide me.
Thank you,
Valerie Peabody
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Valerie Peabody:
Quote from @Jared Smith:
@Valerie Peabody congrats on post # 1. There are lots of ways in real estate to make passive income but it comes down to if you are willing to exchange up your money for someone else's time? If you find a home on your own and place it with a Property Management company you will need to determine how much to rent it for, how to get it rented, etc. You can have the company do this for you after you purchase but that introduces some additional risk into your investment.
Another way to do this is to find a partner/company that renovates and places the residents in the home before you purchase. Are you going to give up some portion of return for this service, potentially, but you also just took all of your major unknown variables out of the rental equation. If you go this path, I recommend you purchase in solid performing area with the median price point. Too low of price point looks great on paper but typically ends up being a headache and money pit. Too high of price point may be good for appreciation but there is an inflection point that rents no longer track linearly with home price. In my experience that is around $275-$300k. Over that price in the markets I work with your rent/price ratio starts dropping.
Hope that was helpful! Happy to chat anytimeHi Jared,
Thanks for your response. We have homes in North Alabama, and I'd be interested to hear your take on Tennessee. We have relatives in AL, so we can figure out the renovation aspect if needed in that area. We also have management out there. If we go to a different area though, we would need someone to manage and work on any new properties. I am willing to look out of our area to find deals.
I appreciate you reaching out. I felt very much like I was all on my own until I found BiggerPockets and you and so many others have reached out to guide me.
Thank you,
Valerie Peabody
stick to the areas you know and with people you already know and trust. the mid west deep south basically is all interchangeable.. same product same returns its all about who is managing your assets and if its family and they are good at it and trust worthy keep building in that market is my HO in the FWIW file. Although if your itching to go some place different I do recommend Vegas for LA folks.. many reasons.
No income tax you can drive there.. new to newer product not 100 year old houses with basements . stable weather no freeze thaw no tornadoes no major hail .. Stucco houses with tile roofs and desert landscaping.. in the mid west and deep south the yards will go wild with the summer rains etc. But for me the big one is Property taxs for non owner occ is some of the lowest if not lowest in the country and very decent insurance rates those two can be cash flow killers.. then if you buy a nicer home say 300 to 500k your going to get a 700 fico tenant and or can do MTR and really score big.. Just sayin.. Same thing with some parts of CA. some of the rural counties have some pretty good deals that would equal stuff in the mid west.. although quality of tenant might not be as high as Vegas and Vegas has good landlord rules as well.
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Thanks for the advice!
- Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes1y
Are you looking to invest in OC, or are you open to other areas in CA? OC is tough to cash flow, but we've had good luck in other parts of the state.
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Jesse Rivera:
Are you looking to invest in OC, or are you open to other areas in CA? OC is tough to cash flow, but we've had good luck in other parts of the state.
Hi Jesse,
We do live in Irvine, CA for my husband's work, but we are likely going to be investing out of state. I am curious about what kinds of cashflow opportunities you find here in the OC!
Thanks,
Valerie Peabody
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Valerie Peabody congrats on joining this great community!
Keep in mind, you'll only get out of it what you put into it:)
Cashflow will be tough to find in the most popular markets:( You may end up looking in the Midwest.
Here's an overview of why:
___________________________________________________________________
The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts. This caused a historically unique opportunity for investors - they could buy Class A properties and immediately cashflow when renting them out.
This couldn't last forever, and it didn't, as excited new investors drove up prices.
Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.
So, the flood of new investors switched to buying Class B properties.
COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors. According to CoreLogic, in December of 2023, almost 30% of home sales were to investors!
Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).
Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.
In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.
If you don't believe us, try putting several Class D tenants in Class A apartment buildings and watch what happens. Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.
In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
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%
According to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.
To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure. If only it was that easy. Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent. Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.
Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.
We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.
If you end up exploring investing in the Midwest, Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, all of which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
Logical Property Management4.9451 Reviews- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Drew Sygit:
@Valerie Peabody congrats on joining this great community!
Keep in mind, you'll only get out of it what you put into it:)
Cashflow will be tough to find in the most popular markets:( You may end up looking in the Midwest.
Here's an overview of why:
___________________________________________________________________
The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts. This caused a historically unique opportunity for investors - they could buy Class A properties and immediately cashflow when renting them out.
This couldn't last forever, and it didn't, as excited new investors drove up prices.
Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.
So, the flood of new investors switched to buying Class B properties.
COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors. According to CoreLogic, in December of 2023, almost 30% of home sales were to investors!
Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).
Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.
In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.
If you don't believe us, try putting several Class D tenants in Class A apartment buildings and watch what happens. Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.
In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
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%
According to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.
To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure. If only it was that easy. Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent. Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.
Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.
We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.
If you end up exploring investing in the Midwest, Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, all of which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
Wow Drew! That was a lot of great info! I'm really going to put in the effort. We have some property in Alabama, but we are interested in the Midwest, too. I want to learn how to use the tools available here on BiggerPockets and have some conversations with folks like yourself, so I can make the right decisions and be a successful investor.
Thanks,
Valerie Peabody
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Welcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!
Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.
A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:
- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem.
- South Bend, IN – Underrated market with solid returns and affordable small multifamily options.
- Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market.
- Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.
If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.
Happy to help or answer any other questions!Best of luck,
Melissa
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Melissa Justice:
Welcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!
Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.
A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:
- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem.
- South Bend, IN – Underrated market with solid returns and affordable small multifamily options.
- Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market.
- Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.
If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.
Happy to help or answer any other questions!Best of luck,
Melissa
Hi Melissa,
Thanks for the ecouragement and information. Our family has some Single-Family homes in Decatur, AL, so Birmingham has been catching my eye lately! I can get someone out to visit a property to vet it for me, but I'd have to set up all the peripherals like management, maintenance, etc. I appreciate your info and guidance.
Thanks,
Valerie Peabody
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Quote from @Valerie Peabody:
Quote from @Melissa Justice:
Welcome to the community and congrats on already owning a cash-flowing rental with an ADU, that's a solid start!
Since you’ve got some experience investing with family and are looking to scale with a focus on cash flow and passive income, you’re in a great position to expand, especially if you're open to looking beyond California. As you probably already know, finding strong cash flow in-state can be tough with current prices and taxes.
A lot of investors in your shoes are turning to landlord-friendly, lower-cost markets that still offer solid rent-to-price ratios and long-term stability. Great places to explore for both turnkey rentals and value-add deals include:
- Akron, OH – Low acquisition prices, steady rent demand, and a strong turnkey ecosystem.
- South Bend, IN – Underrated market with solid returns and affordable small multifamily options.
- Birmingham, AL– Excellent rental market with consistent appreciation and a strong labor market.
- Memphis, TN– Known for cash flow and investor-friendly property management infrastructure.
If you’re looking to build more passive income, turnkey rentals or partnering with vetted local teams can help you scale without the day-to-day stress. Since you're already managing a rental, you know the value of good property management. Apply that same standard to out-of-state deals and you can grow a portfolio without being hands-on.
Happy to help or answer any other questions!Best of luck,
Melissa
Hi Melissa,
Thanks for the ecouragement and information. Our family has some Single-Family homes in Decatur, AL, so Birmingham has been catching my eye lately! I can get someone out to visit a property to vet it for me, but I'd have to set up all the peripherals like management, maintenance, etc. I appreciate your info and guidance.
Thanks,
Valerie Peabody
I've DMed you some info :-)
- 1yJoe HomsBusiness MemberFlipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
@Valerie Peabody come join us this month and network with investors from all over doing everything Real Estate Related.
https://www.biggerpockets.com/forums/521/topics/1241780-how-...
Good Investing...
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
@Joe Homs Thanks! I'd love to join! I'll check my schedule!
- 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Valerie Peabody!
Sounds like you’ve already got a great start with your rental in Pacheco and some investing experience under your belt. If you're looking to expand into more cash-flowing deals and build passive income, it might be worth looking outside of California, especially in markets where the numbers still make sense. A place like Memphis offers solid rent-to-price ratios, affordable entry points (often under $150K for renovated SFHs), and strong rental demand driven by major employers like FedEx and St. Jude. It’s a great option if you’re looking for fully managed, turnkey properties that provide consistent cash flow without the day-to-day headaches. Happy to connect and share how other investors are scaling passively in markets like this!- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Bernice Retzloff:
Hey @Valerie Peabody!
Sounds like you’ve already got a great start with your rental in Pacheco and some investing experience under your belt. If you're looking to expand into more cash-flowing deals and build passive income, it might be worth looking outside of California, especially in markets where the numbers still make sense. A place like Memphis offers solid rent-to-price ratios, affordable entry points (often under $150K for renovated SFHs), and strong rental demand driven by major employers like FedEx and St. Jude. It’s a great option if you’re looking for fully managed, turnkey properties that provide consistent cash flow without the day-to-day headaches. Happy to connect and share how other investors are scaling passively in markets like this!Thanks Bernice! It looks like a lot of people are liking Memphis right now!
- 1yJulio GonzalezPro MemberSpecialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
HI Valerie, glad to have you as a part of this awesome community!
-Julio- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Julio Gonzalez:
HI Valerie, glad to have you as a part of this awesome community!
-JulioThanks Julio!
- 1yMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 491 posts · 549 votes
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Hey Valerie. Welcome to BP! I'm originally from San Francisco and glad to see more Bay Area investors on here!
I'd suggest looking into cities with good growth potential (both economic and population growth). Landlord friendly states are also a huge plus compared to what I've seen in the Bay.
Happy to answer any questions you might have!
Reafco - Mike Paolucci 512 Reviews- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Quote from @Mike Paolucci:
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Hey Valerie. Welcome to BP! I'm originally from San Francisco and glad to see more Bay Area investors on here!
I'd suggest looking into cities with good growth potential (both economic and population growth). Landlord friendly states are also a huge plus compared to what I've seen in the Bay.
Happy to answer any questions you might have!
I grew up in San Jose, but have lived all around the Bay Area, including Mission Bay in SF! Columbus, OH is a city name I see popping up a lot right now. I've never been there, but I know it's a big college town and it's had good population growth, right? That's a good thing for investments!
- 1yMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 491 posts · 549 votes
Quote from @Valerie Peabody:
Quote from @Mike Paolucci:
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Hey Valerie. Welcome to BP! I'm originally from San Francisco and glad to see more Bay Area investors on here!
I'd suggest looking into cities with good growth potential (both economic and population growth). Landlord friendly states are also a huge plus compared to what I've seen in the Bay.
Happy to answer any questions you might have!
I grew up in San Jose, but have lived all around the Bay Area, including Mission Bay in SF! Columbus, OH is a city name I see popping up a lot right now. I've never been there, but I know it's a big college town and it's had good population growth, right? That's a good thing for investments!
Definitely a good thing! That's awesome!! I grew up in North Beach and used to work over in Mission Bay!
Columbus is a great option when you compare cost of entry to the Bay. Happy to connect and chat a bit further about it and share some experiences!
Reafco - Mike Paolucci 512 Reviews
- Real Estate Agent · Member since 2023 · 831 posts · 577 votes1y
Hey Valerie, welcome and congrats on turning your property into a rental! If cash flow and passive income are your goals, a lot of investors are exploring markets like the midwest where prices are lower and returns are stronger. I work with many out of state investors, especially from California, who are priced out of their local markets and looking for better opportunities. I’m originally from NYC myself, so I definitely understand what it’s like to be in a high cost, competitive market with limited deal flow.
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1yOut of state is where we are looking. We are renting here in Irvine, CA, and my rent is half the cost of what the mortgage payment would be if I bought this house! I see you're in Columbus too. Lots of folks are talking about Columbus! I'll definitely want to learn more about that city!
Quote from @Nadeem Alamgir:
Hey Valerie, welcome and congrats on turning your property into a rental! If cash flow and passive income are your goals, a lot of investors are exploring markets like the midwest where prices are lower and returns are stronger. I work with many out of state investors, especially from California, who are priced out of their local markets and looking for better opportunities. I’m originally from NYC myself, so I definitely understand what it’s like to be in a high cost, competitive market with limited deal flow.
Thanks! - Real Estate Agent · Member since 2023 · 831 posts · 577 votes1y
Quote from @Valerie Peabody:
Out of state is where we are looking. We are renting here in Irvine, CA, and my rent is half the cost of what the mortgage payment would be if I bought this house! I see you're in Columbus too. Lots of folks are talking about Columbus! I'll definitely want to learn more about that city!Quote from @Nadeem Alamgir:
Hey Valerie, welcome and congrats on turning your property into a rental! If cash flow and passive income are your goals, a lot of investors are exploring markets like the midwest where prices are lower and returns are stronger. I work with many out of state investors, especially from California, who are priced out of their local markets and looking for better opportunities. I’m originally from NYC myself, so I definitely understand what it’s like to be in a high cost, competitive market with limited deal flow.
Thanks!Sending you a DM!
- 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
If you're looking for more cash-flowing deals, I’d recommend exploring landlord-friendly markets like Texas, Florida, or even parts of Arizona where rent-to-price ratios are stronger. Since you already have experience with ADUs, you might also consider markets that encourage them, like San Diego, where adding an ADU can significantly boost cash flow. Focus on off-market deals and network with local wholesalers or property managers to find better margins. Those connections are gold for passive income opportunities!
Kerlous Tadres | Reafco Real Estate539 Reviews- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1yTexas, Florida, and Arizona are all places that my Bay Area neighbors have moved to over the last 10 years! I guess they knew something I didn't! Thanks for the info!
Quote from @Kerlous Tadres:
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
If you're looking for more cash-flowing deals, I’d recommend exploring landlord-friendly markets like Texas, Florida, or even parts of Arizona where rent-to-price ratios are stronger. Since you already have experience with ADUs, you might also consider markets that encourage them, like San Diego, where adding an ADU can significantly boost cash flow. Focus on off-market deals and network with local wholesalers or property managers to find better margins. Those connections are gold for passive income opportunities!
- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
Thanks everyone! I'm here to make connections so I can learn and make some deals!
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Valerie Peabody
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Hi Valerie, if you live in California, you should definitely consider investing out of state. As an investor, you should look into income hacking. It's a concept which you earn a high income in your local market but you use the capital to invest in a much cheaper up and coming real estate market where you can still find cash flow and tons of appreciation! You would get much better bang for your buck in a market like Columbus Ohio (you can easily find deals that still hit the 1% rule for 120-180k and in good locations. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews- Investor · Irvine, CA · Member since 2025 · 18 posts · 19 votes1y
@Jimmy Lieu Thanks Jimmy! Columbus keeps coming up for me. I'd love to learn more about Columbus!
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes1y
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Holla
- 1yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Valerie Peabody:
Hello! I just moved to Irvine from the Bay Area. We still own our house with ADU in Pacheco, CA, and the property is a rental now. We have invested with family over the years, and we're looking to make more investments. I'm hoping to learn how to find more deals that cashflow and make passive income.
Welcome to BiggerPockets, Valerie!
- Real Estate Agent · Nashville, TN · Member since 2025 · 125 posts · 62 votes1y
Welcome to Irvine! Moving from the Bay Area, you probably already know how challenging it can be to find good cash-flow deals in California.
If you’re looking to expand your portfolio with solid cash flow and passive income, I’d recommend exploring markets a bit beyond Irvine—places like Middle Tennessee have been attracting a lot of investors because of more affordable pricing and strong rental demand. The Nashville area, in particular, offers multi-family and single-family homes with better cash flow potential compared to much of California.
Since you have experience investing with family, you might appreciate working with local agents who specialize in turnkey or value-add properties and can help source deals before they hit the broader market.
If you want, I can connect you with trusted property managers here in Middle Tennessee who can help you find properties that fit your goals and manage them for true passive income. I am an agent who specialize in investment properties myself so I don't mind you reaching out upon the market!
Feel free to reach out anytime!
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