Good markets for a new investor

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
1y

@Nicholas Vialpando,

Totally get it - Colorado can be brutal for first-time investors. Entry prices are high, competition is fierce, and cash flow can be thin.

If your goal is to start building wealth, you don’t have to buy where you live. Many new investors look to Midwest & Southeast markets where you can get cash-flowing rentals at reasonable prices like Birmingham, Columbus, GA, parts of TX, Memphis, Akron & Canton, OH, Tulsa.

Look for turnkey properties so you can start cash flowing immediately. Use a local property manager if you can’t be hands-on.

Start small, focus on cash flow, and scale over time. Your first property doesn’t have to be local - it just has to work financially.

Always happy to chat more about what's worked for other investors. Best of luck!

[email protected]313-221-8718
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Nicholas Vialpando

    if not in your immediate area then within 1-2 hours

    1Reply
  • Account Closed
    Investor · Toledo-MetroDetroit-Dallas · Member since 2022 · 122 posts · 71 votes
    1y

    @Nicholas Vialpando,

    You should look into Midwest markets where numbers still make sense.

    In places like Toledo or Detroit you can still find solid single-family homes around $100K that rent for roughly $1,000/month, hitting or coming close to the 1% rule. These aren’t in war zones either, there are plenty of stable, middle-class areas with good tenant demand and affordable management. Dallas might be a good option if you're looking for decent cash flow but more long-term appreciation.

    If you’re open to out-of-state investing, those markets can be a great way to get started and actually see monthly cash flow from day one. Feel free to let me know if you want to know more about any of these markets i've invested in!

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    What other Midwest city has as much investment planned as Detroit, yet offers such affordable real estate investments?

    $2.5B New Center by Henry Ford Health, Pistons owner and Michigan State University
    https://www.clickondetroit.com/news/local/2023/02/08/incredible-investment-in-our-city-25b-detroit-neighborhood-redevelopment-to-begin-in-2024/

    $1.5B Investment, 12,000 temp jobs, 6,000 New Jobs: District Detroit Development
    https://www.detroitnews.com/story/business/2022/11/15/district-detroit-1-5b-development-to-include-housing-retail-hotels/69649853007/

    $1.4B Total as Hotel Added to Hudson Site

    https://www.detroitnews.com/story/business/2023/11/02/hudsons-site-hotel-plans-move-ahead-as-city-issues-permit/71426631007/

    $439M Gilbert Foundation investment in Detroit

    https://www.henryfordmsu.org/news/september-2023/gilbert-family-foundation-announces-nick-gilbert-neurofibromatosis-research-institute

    $400M Investment, 517 New Jobs: Norway’s Nel Hydron

    https://businessfacilities.com/nel-hydrogen-will-build-400m-gigafactory-in-southeast-michigan#:~:text=In%20Southeast%20Michigan-,Nel%20Hydrogen%20Will%20Build%20%24400M%20Gigafactory%20In%20Southeast%20Michigan,green%20hydrogen%20using%20electrolyzer%20technology.

    $300M Huntington Place Renovations & New Detroit Hotel

    https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached

    $200M Chase Investment in Detroit

    https://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment

    $44M Investment, 237 New Jobs: Bollinger Motors

    https://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/

    $21.5M Investment for Detroit west side Dexter Neighborhood

    https://www.clickondetroit.com/news/local/2023/11/01/neighborhood-on-detroits-west-side-receives-more-than-215m-in-investments/

    $20.6M Investment, 186 New Jobs: BorgWarner

    https://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs

    $11M, 200 New Jobs: Volkswagen Scout Brand Investment in Detroit

    https://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/

    New Detroit Developments to Be Excited About

    https://www.metrotimes.com/detroit/15-new-detroit-developments-to-be-excited-about-photos/Slideshow/32734721/32735392

    3 International Companies Choose Detroit

    https://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/

    6 New Residential Developments in Detroit

    https://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/

    Contact us with any questions you have.

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    1Reply
  • Eric DeNardoPro Member
    Real Estate Agent · Denver · Member since 2020 · 366 posts · 151 votes
    1y

    @Nicholas Vialpando - are you interested in investing in Colorado? Or are you thinking of out of state markets? I'm Thornton as well, and you might think about Colorado Springs - it's a strong market and cheaper than Denver. But it also depends on your price range. Let's connect!

    [email protected]
    0Reply
  • Nadeem Alamgir
    Real Estate Agent · Member since 2023 · 831 posts · 577 votes
    1y

    @Nicholas Vialpando

    Cleveland, OH, is the market I focus on and it has solid multifamily properties that cash flow under $200k. It's a strong long term market for private pay or Section 8. Mid and STR can work but most investors focus on long terms here for the most part.

    0Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
    1y
    Quote from @Nicholas Vialpando:

    I’m a new real estate investor and I’m looking for my first deal. The market in Colorado is vary competitive. Where are some places I should look for my first rental property.


     I've done pretty well in Columbus, OH. Depending on your strategy, you can find some great single families in A/B neighborhoods for around 220-250k that would appreciate very well over the years and have good school systems. Multi-family will be in the 300k+ range for those type of neighborhoods as well. 

    If you're ok with C class rentals then you can find some stuff in the 100-250k range as well (single & multi-fmaily). 

    [email protected]614-892-9184
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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    1y
    Quote from @Nicholas Vialpando:

    I’m a new real estate investor and I’m looking for my first deal. The market in Colorado is vary competitive. Where are some places I should look for my first rental property.


     I'd say anywhere in the Midwest that is a landlord friendly state. I own 25+ unit in Columbus and sell 110+ properties a year so I would be biased to say here. But also, most of my investors are Californian. This is my suggestion in simple terms.

    Columbus - Decent cashflow and amazing appreciation

    Dayton - Affordable and Good Cashflow

    Cleveland - Good Cashflow

    [email protected]614-802-5698
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Nicholas Vialpando:

    I’m a new real estate investor and I’m looking for my first deal. The market in Colorado is vary competitive. Where are some places I should look for my first rental property.

    Hey Nicholas, welcome to BP and congrats on taking the first steps toward investing! If you’re feeling priced out and squeezed by competition in Colorado, you’re not alone—it’s a tough market to break into right now. A lot of newer investors are starting out in more affordable, cash-flowing cities where their money goes further. One market worth seriously considering is Columbus, Ohio. It’s been one of the hottest Midwest markets with strong population and job growth, tons of big companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG moving in, and affordable price points where you can still find deals in the $120K–180K range that hit the 1% rule and cash flow from day one. It’s also landlord-friendly and has strong rental demand, making it a solid place for new investors to build a foundation. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
    1y

    @Nicholas Vialpando,

    Totally get it - Colorado can be brutal for first-time investors. Entry prices are high, competition is fierce, and cash flow can be thin.

    If your goal is to start building wealth, you don’t have to buy where you live. Many new investors look to Midwest & Southeast markets where you can get cash-flowing rentals at reasonable prices like Birmingham, Columbus, GA, parts of TX, Memphis, Akron & Canton, OH, Tulsa.

    Look for turnkey properties so you can start cash flowing immediately. Use a local property manager if you can’t be hands-on.

    Start small, focus on cash flow, and scale over time. Your first property doesn’t have to be local - it just has to work financially.

    Always happy to chat more about what's worked for other investors. Best of luck!

    [email protected]313-221-8718
    3Reply
  • Precious Akinola
    Developer · Hinton, WV · Member since 2025 · 14 posts · 2 votes
    1y

    Welcome to BiggerPockets, Nicholas! Congrats on taking the first step into real estate investing - that's exciting!

    You're asking all the right questions. Colorado is definitely competitive, so branching out to other markets is a smart move. As others have mentioned, the Midwest and Southeast have some really strong opportunities for new investors with better cash flow potential. Do your market research thoroughly - it'll pay off big time.

    One thing I'd also suggest as you grow: consider building your own personal website. It's a great way to establish credibility, showcase your properties, and attract potential renters or buyers. Pairing that with solid SEO (search engine optimization) can help your site and listings get in front of more people who are actually searching for what you're offering.

    If you're ever interested in discussing web and SEO strategies to help build your presence as you scale, I'd be happy to chat. Best of luck with your first deal!

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    1y

    Happy to chat on Kansas City. Solid market for a variety of strategies 

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    1y
    Quote from @Nicholas Vialpando:

    I’m a new real estate investor and I’m looking for my first deal. The market in Colorado is vary competitive. Where are some places I should look for my first rental property.

    Hi Nicholas, you might want to take a look at Columbus, Ohio. The city’s experiencing a strong increase in job opportunities and major developments from big companies like Intel, Facebook, and Amazon, among others, which help keep rental demand high. I invest here and currently own over 60 doors. With its steady economy and solid rent-to-price ratios, it’s definitely a market worth keeping on your radar.

    1Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y

    @Nicholas Vialpando 

    You should start by looking in nearby but less competitive areas such as Pueblo, Colorado Springs outskirts, or Greeley since these often offer better cash flow than Denver or Boulder. Focus on markets with steady job growth, universities, or military bases since those attract long-term renters.

    Look for properties that can maximize bonus depreciation or cost segregation especially if you plan to qualify as a REP/STR. Even a smaller property can help you offset other income.

    Keep your first deal simple with a single family or small multi unit that meets the 1% rule meaning monthly rent is about 1 percent of the purchase price and can be easily self managed or handled by a property manager.

    Think long term and buy where you can hold through cycles and where tax benefits and appreciation work together not just where the price looks low. Happy to help.

    This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

    [email protected]941-914-7779
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  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Hey Nicholas, that’s a great mindset to have starting out! I remember how tough it felt trying to find my first deal too especially in a competitive market. What helped me early on was looking for areas where numbers actually made sense and focusing on building a solid local “Core 4” (lender, agent, PM, contractor). Once you have that, it’s much easier to spot a good rental deal no matter where you invest.

    Are you leaning more toward cash flow or appreciation for your first one? Happy to keep the conversation going!

    [email protected]614-412-2912
    Reafco.512 Reviews
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  • Matthew Thornton
    Member since 2025 · 104 posts · 37 votes
    1y

    I have a lot of Clients out of Colorado buying in the OKC Metro..

    0Reply
  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hey @Nicholas Vialpando! Welcome to the investing journey!

    You’re absolutely right! Colorado’s a tough market right now with high prices and competition making it hard to find solid cash-flowing rentals. A lot of new investors in your position are starting to look out of state to markets where the numbers still make sense.

    If your goal is steady cash flow and long-term stability, here are a few places worth researching:

    Memphis, TN – Super landlord-friendly, affordable (you can still find solid single-family homes in the $100K–$150K range), and strong rental demand from both working-class and Section 8 tenants. This is actually where I’m based, and I work with a lot of out-of-state investors helping them build portfolios here through our local property management team at FoundationPM.com.

    Birmingham, AL – Similar price points and strong rent-to-price ratios. Great for buy-and-hold investors.

    Indianapolis, IN – Stable Midwest market with solid appreciation and a lot of investor activity.

    Kansas City, MO – Good mix of affordability, population growth, and diverse job market.

    If you’re new, I’d recommend:

    1. Picking one market to learn inside and out.

    2. Finding an investor-friendly agent and a property manager before you buy.

    3. Running the numbers conservatively (factor in property management, maintenance, vacancy).

    If you ever want to explore what Memphis could look like for your first deal, I’d be happy to walk you through sample numbers or connect you with resources to get started.

    901-664-1949
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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y
    Quote from @Nicholas Vialpando:

    I’m a new real estate investor and I’m looking for my first deal. The market in Colorado is vary competitive. Where are some places I should look for my first rental property.


    Hey Nick, I would take a look at the Midwest. There are some great markets in the Midwest, and it could be a great place to start in terms of having a landlord-friendly area to start. The biggest thing I would do if I were you is to get a solid CORE 4, starting off with a great investor-friendly agent, property manager, contractor, and attorney 

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate542 Reviews
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