Looking to purchase first long term investment property

[Jon Benson]

We're new to the site, but it looks very helpful.

We've been looking to buy a house to rent out long term (under $200K). After a lot of research, Indianapolis seems like the right fit. It would be an OOS purchase (we're in Virginia). We've been saving for a long time and looking to pay cash. We need help understanding Federal and State taxes (how much should we expect to pay each year in taxes), the right areas in Indianapolis to purchase a house (and the areas to stay away from), a good property management company, a good independent home insurance agency, and help understanding what we wouldn't even think to ask about. Also, what are the benefits and disadvantages in purchasing a multi-family home. Thank you ahead of time for any and all assistance you can offer! :-)

[Melissa Justice]

@Jon Benson,
Welcome to the platform! It’s awesome to see the research and thought you’ve already put into this! Indianapolis is definitely a solid rental market and a popular choice for many out-of-state investors, especially with your budget and long-term goals.

That said, since you're paying cash and looking to maximize return while minimizing risk, it may be worth keeping an open mind to a few other comparable markets that offer strong cash flow, affordable pricing, and investor-friendly dynamics, namely:

Memphis, TN – A high-demand rental market with solid rent-to-price ratios, low property taxes, and no state income tax. It’s especially strong for long-term rentals in working-class neighborhoods.

Birmingham, AL – This is a landlord-friendly city with good appreciation potential and a growing economy driven by healthcare and tech. Birmingham also has great pockets where your budget can stretch far.

Akron & Canton, OH – A stable Midwest market with strong Section 8 demand, very affordable home prices (often well under \$120K), and consistent cash flow. It's also seeing quiet growth as Cleveland's influence expands.

Each of these markets offers similar or better ROI potential than Indy, and they also have well-established investor infrastructure — from local property managers to insurance agents and experienced contractors — all critical for out-of-state success.

So while Indianapolis is still a great option, staying flexible could help you find better returns, less competition, or even stronger team alignment.

You’re clearly on the right path and asking the right questions. Feel free to keep the conversation going as you narrow things down!

Best of luck,

Melissa