Hello! New Investor!

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Hello! New Investor!

Andy Selby
New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes

Hi, excited to introduce myself. Live in Sacramento and want to learn more about real estate investing. I am researching the mid west for locations that fit my buy box.

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

@Andy Selby,

Welcome! The Midwest is a great place to start - strong cash flow, affordable entry points, and stable rent demand. Markets like Akron & Canton, OH and Columbus, GA (although SE) are especially solid right now with turnkey options and motivated sellers offering incentives. Great areas to start building your portfolio while learning the ropes.

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

    @Andy Selby

    hi Andy.  welcome. happy to answer any questions you have.  can you try to stay local to Sacramento?  I know, I know, California is expensive and not landlord friendly.  But a lot of California investors buy in the midwest without a team in place and just get crushed.  So hoping to help you avoid that.

    1Reply
  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 903 votes
    1y

    Welcome @Andy Selby! Are you hellbent on active investing, or are you also open to passive investing? 

    I started my real estate investing career buying rentals, and lived to regret it. I ended up unloading my entire portfolio and today I invest $5K each month as a member of the co-investing club. We meet 1-2 times/month to vet investments together, and each member can opt in with $5K+ if they like that particular deal (instead of the typical $50-100K required). 

    It's definitely not for everyone, but I love it as a form of dollar cost averaging my real estate investments. 

    1Reply
  • Scott ScovilleBusiness Member
    Real Estate Agent · Sacramento, CA · Member since 2019 · 502 posts · 276 votes
    1y
    Quote from @Andy Selby:

    Hi, excited to introduce myself. Live in Sacramento and want to learn more about real estate investing. I am researching the mid west for locations that fit my buy box.


     Welcome! I'm an investor in Sacramento. Happy to connect anytime.

    [email protected]415-933-2202
    Scoville Realty & Investments LLC
    WebsiteView Page
    0Reply
  • Andy Selby
    OP
    New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes
    1y

    Thanks, Nicholas! I’ll definitely be reaching out for advice once I get going. 
    Take care!

    0Reply
  • Andy Selby
    OP
    New to Real Estate · Sacramento, CA · Member since 2025 · 10 posts · 15 votes
    1y

    Thanks, Douglas! 

    0Reply
  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    1y

    @Andy Selby

    Welcome to BP! I grew up in NorCal and moved to Reno, NV to live and invest. Sac is a great market (IMO one of the best in CA) for the long term. 

    I agree with @Nicholas L., can you stay local? 

    Cash flow can look attractive in the Midwest, but if you don't know what you're doing it can have the opposite result.

    Here are some helpful articles written by fellow BP members you should check out about out of state investing: 

    https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

    https://www.biggerpockets.com/forums/48/topics/1159104-overl…

    Hope this helps, and best of luck to you!

    415-233-1796
    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @G. Brian Davis

    I've been thinking about this a lot lately.  To your point, if you buy non value add real estate at retail price, with conventional financing and don't self-manage, your returns just aren't going to be that great.  People discover BP and want to "do deals" regardless of the returns.

    Now, what I like about RE is that I can BRRRR, and also buy on seller finance. It's a grind, but if you BRRRR properly you get all your capital back and your tenants buy you a house while you use the depreciation to offset taxes on your W2.

    But no reason not to also invest in stocks or other passive vehicles.

    And I think what you're doing sounds great, I just think you'd want to have a fairly large amount to invest.  If you're on BP because you have $20K and don't even own a primary you shouldn't invest in anything - you just need to get into a stronger financial position first.  (Not saying that is OP - just in general.)

    Good post and definitely something for everyone to think hard about.  The days of buying ANY property with a 3.75% rate, making some cash flow and having it appreciate 40% in 3 years are gone.

    0Reply
    • G. Brian DavisPro Member
      Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 903 votes
      1y
      Quote from @Nicholas L.:

      @G. Brian Davis

      I've been thinking about this a lot lately.  To your point, if you buy non value add real estate at retail price, with conventional financing and don't self-manage, your returns just aren't going to be that great.  People discover BP and want to "do deals" regardless of the returns.

      Now, what I like about RE is that I can BRRRR, and also buy on seller finance. It's a grind, but if you BRRRR properly you get all your capital back and your tenants buy you a house while you use the depreciation to offset taxes on your W2.

      But no reason not to also invest in stocks or other passive vehicles.

      And I think what you're doing sounds great, I just think you'd want to have a fairly large amount to invest.  If you're on BP because you have $20K and don't even own a primary you shouldn't invest in anything - you just need to get into a stronger financial position first.  (Not saying that is OP - just in general.)

      Good post and definitely something for everyone to think hard about.  The days of buying ANY property with a 3.75% rate, making some cash flow and having it appreciate 40% in 3 years are gone.


       Nicholas if you're ever looking to diversify into more markets and asset types, come by our next co-investing club meeting, we love hearing input from many different investors about each deal we vet together!

      1Reply
  • Joseph TadresPro Member
    Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
    1y

    Hey Andy! Welcome to BP! I would love to hop on a call and talk about the Midwest market. Definitely a good place to invest with a cheaper price point than some of these other markets.

    1Reply
  • Sam Page
    Member since 2025 · 10 posts · 2 votes
    1y

    What markets are you looking at, Andy? We may have crews/teams that can help.

    0Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Hey @Andy Selby, welcome to the investing world! I’ve personally invested in the Columbus and Dayton markets, and I’ve helped a lot of out-of-state clients pick up rentals and BRRRRs here in Ohio. From my experience, the Midwest really shines for affordability, steady cash flow, and landlord-friendly laws. Columbus has a strong population and job growth, while Dayton offers great value-add potential with lower entry prices. I’d recommend locking in your buy box first (property type, budget, and cash flow goals), then focusing on a couple of key metros instead of spreading too wide. If you share what kind of returns or properties you’re targeting, I can help point you to neighborhoods in Ohio that match what you’re looking for.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate542 Reviews
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    1Reply
  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 519 posts · 1k+ votes
    1y

    @Andy Selby,

    Welcome! The Midwest is a great place to start - strong cash flow, affordable entry points, and stable rent demand. Markets like Akron & Canton, OH and Columbus, GA (although SE) are especially solid right now with turnkey options and motivated sellers offering incentives. Great areas to start building your portfolio while learning the ropes.

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

    [email protected]313-221-8718
    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Andy Selby:

    Hi, excited to introduce myself. Live in Sacramento and want to learn more about real estate investing. I am researching the mid west for locations that fit my buy box.

    Hey Andy, welcome to BiggerPockets! Great to see you jumping in and exploring the Midwest—it’s honestly one of the best regions right now for affordable, cash-flowing properties. I’d definitely recommend looking into Columbus, Ohio. I actually moved here from Portland in 2020 to start investing and now own 10+ rentals. The macroeconomics here are really strong with tons of job and population growth, and big companies like Intel, Amazon, Google, Facebook, Microsoft, and Honda expanding here. You can still find properties in the $120K–180K range that hit the 1% rule and cash flow from day one, plus it’s super landlord-friendly and has great appreciation potential. It’s a solid market if you’re serious about building a long-term portfolio. Happy to connect and answer any questions you have! 
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9124 Reviews
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    1y
    Quote from @Andy Selby:

    Hi, excited to introduce myself. Live in Sacramento and want to learn more about real estate investing. I am researching the mid west for locations that fit my buy box.


     Welcome to BP!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Welcome to BP, Andy! You’re in a great spot to start learning. The Midwest has been a solid choice for investors looking for affordable entry points and steady cash flow. I’d start by narrowing your buy box (property type, rent range, returns) and comparing a few metros side by side. What kind of properties are you hoping to start with?  single family or small multifamily? Happy to keep the conversation going!

    [email protected]614-412-2912
    Reafco.512 Reviews
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  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    1y
    Hi Andy and welcome to BP. I'm here in the Midwest. It's a great place to invest. Downturns are not as severe, same with the upswings. But we aren't gambling in REI. We look for long term growth and this is a great place for it.
    0Reply
  • Scott AllenBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 449 posts · 471 votes
    1y

    @Andy Selby Welcome to BiggerPockets and congrats on taking initiative to get started. Happy to connect whenever you'd like to learn more about the midwest markets 

    [email protected]614-698-1227
    Reafco - Columbus, OH
    WebsiteView Page
    1Reply
  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hey @Andy Selby! Welcome to BiggerPockets!

    That’s awesome that you’re already researching Midwest markets! Great move! The region has some of the strongest rent-to-price ratios in the country, especially for buy-and-hold investors looking for solid cash flow and long-term stability.

    If you’re open to it, I’d also recommend taking a look at Memphis, Tennessee. It’s not technically “Midwest,” but it offers similar affordability with strong rental demand, steady appreciation, and landlord-friendly laws. You can still find solid single-family rentals in the $100K–$150K range that hit cash-flow metrics right out of the gate.

    I’m actually a real estate agent here in Memphis, and I work specifically with out-of-state investors helping them build and manage rental portfolios through my team at FoundationPM.com. We handle everything from acquisitions to property management, so you can invest confidently from a distance.

    901-664-1949
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    @Andy Selby

    We think the Midwest is a GREAT place for OOS investors to consider!


    Your first question shouldn't be WHERE to invest (that is #2 question), but HOW you will invest!

    Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:

    1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

    2) The Class of the PROPERTY they are buying - which is relative to the overall area.

    3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

    4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

    5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

    6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

    7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

    Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

    Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

    Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

    Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
    ***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

    https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
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  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 495 votes
    1y

    @Andy Selby Welcome! I've served investors in the Kansas City for over a decade.  One of the top midwest markets for cash-flow!  Happy to provide further insight and real deals to run numbers on.

    [email protected]
    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y

    Hey Andy! Welcome to BP. I love that you're already getting your "buy box" together. Many people don’t even start there, but knowing what you want and what works best with your current finances is a good foundation. It’s important to know what you’re able to invest, where you want to invest, what type of property you’re targeting, and what kind of returns you’re aiming for.

    It's also important to understand how your investment income will interact with your current income and other assets from a tax strategy perspective. Getting clear on things like passive vs. non-passive income, and whether short-term or long-term rentals (STR vs. LTR) fit your goals better, will make a big difference from the jump. And keeping solid records and bookkeeping from the start will save you a lot of stress later.

    Like Nicholas mentioned, building a strong team early on is key, having a lender, real estate agent, and CPA you trust will help you make smart moves and set yourself up for long-term success. Happy to connect and good luck!

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®4.9242 Reviews
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    TaxMD® | Tax Planning Software
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