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Updated 6 months ago on . Most recent reply

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Teresa Madrid
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Hello from San Diego

Teresa Madrid
Posted

Hello! So happy to have found this group and all of the valuable resources. Currently in the San Diego County area, but hope to relocate once our daughter goes off to college this fall. I am a rookie to real estate investing and looking to purchase my first long term rental property this year. I do not plan to purchase in California - only looking at landlord friendly states. What are your top 3 suggestions for those of us just starting out?

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Melissa Justice
  • Rental Property Investor
  • Phoenix, AZ
1,148
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507
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Melissa Justice
  • Rental Property Investor
  • Phoenix, AZ
Replied

@Teresa Madrid,

Welcome! So glad you’re here and congrats on taking the first steps into real estate investing! You're already ahead of the game by focusing on landlord-friendly states and planning to invest out of state, which is a smart move for San Diego–based investors who want better returns.

 op 3 Suggestions for New Investors Looking to Buy Out-of-State Long-Term Rentals:

1. Pick Landlord-Friendly Markets with Strong Fundamentals
Since you're prioritizing landlord-friendly states (great!), here are top beginner-friendly markets that check the boxes for:

* Affordable entry prices
* Solid property management options
* Consistent rent demand
* Favorable laws for landlords

**Birmingham, Alabama**
* Low taxes, strong rents, and cash-flow friendly
* Great turnkey options
* Landlord laws heavily favor owners

** Indianapolis, Indiana**
* Steady appreciation + cash flow combo
* Diverse economy and growing job market
* Lots of investor infrastructure

**Columbia, South Carolina**
* Growing military, student, and medical tenant base
* Low entry prices and very landlord-friendly
* STR potential in nearby lake areas too!

2. Start with a Turnkey or Light Rehab Property
As a rookie investor, focus on speed to cash flow and confidence, not heavy renovations or BRRRRs (yet). Look for:
* Fully rehabbed properties or new builds
* Already-tenanted or rent-ready homes
* Local property managers in place

This lets you learn the business without swinging a hammer or dealing with messy city permitting processes from afar.

3. Build the Right Team First - Before You Buy

In out-of-state investing, your team is everything. Before choosing a market:
* Interview property managers first - they’ll tell you where investors succeed or fail
* Get a local agent or turnkey provider who understands investor needs
* Use investor groups like this one (and BiggerPockets) to get referrals for contractors, inspectors, and lenders

You’ll buy with 10x more confidence when your team is solid.

Don’t let fear of the distance hold you back - real estate is a systems game. When you choose the right market, team, and property type, you can win from anywhere.

If you'd like help evaluating deals in any of those states or others, I’m always here to chat!

Best of luck,

Melissa

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Melissa Justice, Rent to Retirement Investment Strategist

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