First Flip or BRRR, is out of state too much to tackle?
Tina DoolanPro Member
Member since 2026 · 7 posts · 7 votesFirst Flip or BRRR, is out of state too much to tackle?
Most Popular Reply
Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votesQuote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
I am curious considering that you live in cleveland. Why do you want to invest in Phoenix? I live in columbus and own 30+ rental units here and sell over 120+ homes to out of state investors.
They buy here because the market is landlord-friendly, tech companies are shifting/investing here, and the deal flow supply and demand is there alongside cashflow and appreciation.
You should look inside of ohio in my opinion and it is a bonus that you are from the cleveland area.
ReafCo | Ahmed Group 55 Reviews
31 Replies
- 3moAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
I've been investing locally for many years. Initially my biggest hurdle was finding a good, thorough building inspector after I got burned by a bad one on my first deal which turned what should have been a cosmetic renovation into a $75,000 project.
Even though I've lived locally for 30 years I'm still relying on the contacts and knowledge my handyman/contractor has to find reliable subcontractors.
This year I've undertaken my first extensive project where a multi family is more than halfway down to the studs.
It's been a real eye opener. Even with 12 properties and 40 units under my belt I still wouldn't feel comfortable moving out of state or further away than I invest now which has been limited to about a 45 minute driving radius.
This year with gas prices we've tried to outsource the lawns that are 45 minutes away and are even having difficulty finding anyone who is insured to mow two small lawns.the struggle is real with longer distance investing. Please just be aware that there may be issues with finding help no matter if you invest locally or further away.
- Member since 2026 · 7 posts · 7 votes2mo
Quote from @Alecia Loveless:
I've been investing locally for many years. Initially my biggest hurdle was finding a good, thorough building inspector after I got burned by a bad one on my first deal which turned what should have been a cosmetic renovation into a $75,000 project.
Even though I've lived locally for 30 years I'm still relying on the contacts and knowledge my handyman/contractor has to find reliable subcontractors.
This year I've undertaken my first extensive project where a multi family is more than halfway down to the studs.
It's been a real eye opener. Even with 12 properties and 40 units under my belt I still wouldn't feel comfortable moving out of state or further away than I invest now which has been limited to about a 45 minute driving radius.
This year with gas prices we've tried to outsource the lawns that are 45 minutes away and are even having difficulty finding anyone who is insured to mow two small lawns.the struggle is real with longer distance investing. Please just be aware that there may be issues with finding help no matter if you invest locally or further away.
Thank you so much for sharing your firsthand experiences. It's so helpful to hear the honest struggles investors have, even those as experienced as you. Good luck with the huge project this year!
- Member since 2026 · 5 posts · 5 votes2mo
Quote from @Tina Doolan:
Quote from @Alecia Loveless:
I've been investing locally for many years. Initially my biggest hurdle was finding a good, thorough building inspector after I got burned by a bad one on my first deal which turned what should have been a cosmetic renovation into a $75,000 project.
Even though I've lived locally for 30 years I'm still relying on the contacts and knowledge my handyman/contractor has to find reliable subcontractors.
This year I've undertaken my first extensive project where a multi family is more than halfway down to the studs.
It's been a real eye opener. Even with 12 properties and 40 units under my belt I still wouldn't feel comfortable moving out of state or further away than I invest now which has been limited to about a 45 minute driving radius.
This year with gas prices we've tried to outsource the lawns that are 45 minutes away and are even having difficulty finding anyone who is insured to mow two small lawns.the struggle is real with longer distance investing. Please just be aware that there may be issues with finding help no matter if you invest locally or further away.
Thank you so much for sharing your firsthand experiences. It's so helpful to hear the honest struggles investors have, even those as experienced as you. Good luck with the huge project this year!
Am New here Can you help me Out too?
- Investor · Hinton, WV · Member since 2026 · 80 posts · 22 votes3mo
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
That's great Tina when you're ready for any advice you are free to message me anytime.
- 3moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
based on what we've seen in the forums, very, very difficult, and very, very high risk.
it's great that you have familiarity with Cleveland, but are you going to try to manage entirely remotely? how will you source a BRRR-able deal? how will you move fast enough to get something under contract when it comes up? having the team you outlined in place is a pre-requisite, but there's no person or role who finds, validates and contracts for a good deal. that's you.
i invest both in and out of state and would be happy to connect with you directly to discuss the challenges in more detail. i champion no niche or market and am on here to help new investors not lose money.
- Member since 2026 · 7 posts · 7 votes2moIt would be all remote, yes. I make trips there but ideally I would have a property manager to help me out!
Quote from @Nicholas L.:
based on what we've seen in the forums, very, very difficult, and very, very high risk.
it's great that you have familiarity with Cleveland, but are you going to try to manage entirely remotely? how will you source a BRRR-able deal? how will you move fast enough to get something under contract when it comes up? having the team you outlined in place is a pre-requisite, but there's no person or role who finds, validates and contracts for a good deal. that's you.
i invest both in and out of state and would be happy to connect with you directly to discuss the challenges in more detail. i champion no niche or market and am on here to help new investors not lose money.
As far as sourcing, I am looking for a great agent to work with so I can filter through deals and hopefully have access to some off market deals as well.
My financial situation is pretty good so while I am looking to scale long term, I'm willing to be patient to find the right deals in areas I can be proud of.
- Investor · Hinton, WV · Member since 2026 · 80 posts · 22 votes3mo
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
Great questions and honestly, the fact that you're already thinking this clearly about market selection on your first deal puts you ahead of most.
Let me address each of your questions directly.
On Building a Reliable Team Remotely:
It's absolutely doable, but it requires intentionality. Here's the thing most people don't tell you your team is only as strong as your weakest link, and for out-of-state investors, the contractor is almost always that link.
Start with the agent. A great investor-friendly agent in Cleveland isn't just someone who sends you listings they become your eyes and ears on the ground. Ask specifically: "How many investor clients do you work with actively?" If the answer is vague, keep looking.
From the agent, get referrals to a lender, contractor, and property manager. Warm referrals within a trusted local network will always outperform cold searches on Google. Then interview at least 2-3 of each before committing to anyone.
On the Biggest Challenge:
Trust or rather, the process of building it remotely. You can't just pop over to check on a rehab. You can't read a contractor's body language when they tell you "it's almost done." Everything takes longer when you're managing from a distance, and surprises are more expensive because you're not there to catch them early.
The fix? Over-communicate. Set clear milestones and payment schedules with your contractor tied to completion, not just time. Require photo and video updates at every stage. Consider hiring a local project manager or experienced investor friend to do periodic walk-throughs on your behalf.
On BRRRR vs Flip for Your First Out-of-State Deal:
This is where I'd push back slightly on conventional thinking. Flipping out of state on your first deal carries real risk your profit margin depends entirely on your rehab coming in on budget and on time, and with a remote team you're still building trust with, that's a lot of variables you can't fully control yet.
BRRRR is more forgiving in that sense. Even if the rehab runs over slightly, you still have a cash-flowing asset at the end. Cleveland's suburbs are well-suited for BRRRR strong rental demand, lower entry prices than Phoenix, and solid long-term appreciation in the right pockets.
On Whether to Invest Remotely or Wait:
Don't wait. Phoenix prices aren't coming down to where you need them anytime soon, and you have something most out-of-state investors don't genuine local knowledge of Cleveland's neighborhoods. That's not nothing. That's an actual edge.
Your familiarity with the suburbs means you can already filter out bad areas, identify up-and-coming pockets, and smell a bad deal before the numbers even confirm it. Use that.
The investors who struggle remotely are the ones who invest somewhere unfamiliar chasing yield. You're not doing that. You're going somewhere you already understand.
Feel free to reach out directly if you want to talk through a specific Cleveland market, neighborhood, or deal. Happy to help you think it through. - Lender · Philadelphia, PA · Member since 2026 · 2 posts · 0 votes3mo
Tina, good questions and the Cleveland market instinct makes sense given Phoenix valuations right now.
On the financing side specifically since that is where I can add the most value here: out of state BRRRR and flip financing works the same way as local. Hard money and bridge lenders are largely national and do not care where the property is as long as the deal pencils. DSCR lenders for the refinance out are also national and underwrite based on the property cash flow not your local market.
The one thing that does matter for out of state is having a local contractor your lender will accept for draw inspections. That is where a lot of first timers get surprised. Lenders releasing rehab draws require someone on the ground to verify work completion.
On your team building question the order I would suggest is: find your market and target neighborhoods first, then find a local investor friendly agent who actually invests themselves, then build around that relationship. The agent usually knows the contractors and property managers worth talking to.
Cleveland is a solid market for cash flow. The numbers work in ways Phoenix cannot right now.
What is your target property type - single family, small multifamily, or open to either?
- Investor · Hinton, WV · Member since 2026 · 80 posts · 22 votes3mo
Quote from @Oliver Chamberlain:
Tina, good questions and the Cleveland market instinct makes sense given Phoenix valuations right now.
On the financing side specifically since that is where I can add the most value here: out of state BRRRR and flip financing works the same way as local. Hard money and bridge lenders are largely national and do not care where the property is as long as the deal pencils. DSCR lenders for the refinance out are also national and underwrite based on the property cash flow not your local market.
The one thing that does matter for out of state is having a local contractor your lender will accept for draw inspections. That is where a lot of first timers get surprised. Lenders releasing rehab draws require someone on the ground to verify work completion.
On your team building question the order I would suggest is: find your market and target neighborhoods first, then find a local investor friendly agent who actually invests themselves, then build around that relationship. The agent usually knows the contractors and property managers worth talking to.
Cleveland is a solid market for cash flow. The numbers work in ways Phoenix cannot right now.
What is your target property type - single family, small multifamily, or open to either?
Really solid breakdown on the financing side especially the draw inspection point. That catches more first-timers off guard than almost anything else and it rarely gets talked about upfront.
I'll add a few things from the deal sourcing and acquisition side since that's where I can add the most here:
On Cleveland market selection:
Not all of Cleveland's suburbs are created equal for BRRRR or flip. The cash flow numbers look great on paper across a lot of zip codes, but the exit matters just as much as the entry. Some areas have strong rent demand but weak resale liquidity which means your BRRRR refinance works fine but if you ever need to sell, your buyer pool is thin. Know your exit before you commit to a neighborhood, not after.
Areas like Lakewood, Parma, and parts of the east side suburbs tend to have both rental demand and actual resale depth. Worth cross-referencing days-on-market data alongside your cash flow analysis.
On finding deals from out of state:
MLS deals in Cleveland can still work, but the better spreads are usually off-market. Direct mail to absentee owners and probate leads in your target zip codes is still one of the highest ROI sourcing strategies in that market. If you're not ready to run your own campaign yet, connecting with a local wholesaler who knows the neighborhoods you're targeting is a legitimate shortcut just make sure you can verify their ARV independently before trusting their numbers.
And to the question at the end Tina, if you're open to either single family or small multifamily, small multifamily (2–4 units) in Cleveland gives you more cash flow cushion and more forgiveness if one unit sits vacant during a turn. For a first out-of-state deal, that buffer matters more than people realize.
Happy to dig deeper on any of this if helpful.
- 3moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Starting with your market knowledge of Cleveland is actually your biggest asset here. The team builds faster when you already know the geography because you can spot when a contractor's estimate or a property manager's comps just don't add up.
Kerlous Tadres | Reafco Real Estate539 Reviews - Lender · Lake City, MI · Member since 2019 · 118 posts · 42 votes3mo
Hi Tina
I did my first flip remote. It worked for me because I did it in my home town and I had trusted people who I could rely on to complete the work and manage locally for me. I also was able to shop properties becuase I was very familiar with the subdivisions, and street by street uniquenesses.
I chose to start remote because I have enough skill to complete the work needed on the properties as it comes up, but if I was always doing that then I would not be spending my time 'fixing toilets' instead of building my portfolio.
As for building the team, one strategy I used was asking contractors what subtrade they liked to follow behind on a project (i.e. asking painters what drywallers they liked..etc) This helping me find quality trades.
As a mortgage broker we are able to lend across the states so in that respect you could use the same mortgage broker for both long distance and local deals you are working on.
As for waiting vs getting started, I think we are in a market cycle where we can be more agressive on the purchase offers making the deals better becuase properties are sitting longer on the market. If the deal is good I would recommend starting with an easier one (lipstick) to work on getting your systems ironed out before you dive into more challenging ones. - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes3moIf you want repeatability, choose locally. Which after all these years is my choice. There are too many things you can't control when you try to do more than one market.
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
Either move to the location or develop your trusted crew there, because you waste a lot of money and time replicating the needed reliability, skill sets and contacts if you have to repeat the process each time. I find the metro Maricopa area has plenty of properties I can choose from. When someone says they haven't found anything, the either aren't looking in the right ways or they are sticking to the MLS which actual does restrict your choice for flips etc.
It's like looking for a favorite fishing hole. It isn't always obvious, but it's there. - 3moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 899 votes
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
Being familiar with Cleveland is actually a huge advantage. In my experience, out-of-state investing isn't nearly as difficult as people think if you have the right team in place. The biggest challenge is usually finding reliable contractors and property managers, not the distance itself. Since Phoenix has become so competitive, many investors are looking back at Midwest markets where entry prices are lower, and BRRRR deals still exist. If you know the neighborhoods and can build a strong local team, I wouldn't let being out of state stop you. I prefer to buy a solid deal remotely rather than settle for a marginal one just because it's close to home. - 3moPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Tina Doolan
The suburbs in Cleveland are solid areas, just keep in mind that a lot of those areas have a POS, which is short for point of sale. It's a city inspection required in municipalities in Cleveland- Member since 2026 · 7 posts · 7 votes2moThank you for that insight!
Quote from @Patrick Drury:
@Tina Doolan
The suburbs in Cleveland are solid areas, just keep in mind that a lot of those areas have a POS, which is short for point of sale. It's a city inspection required in municipalities in Cleveland
- Member since 2023 · 19 posts · 26 votes3mo
Your Cleveland familiarity is actually a real advantage and I wouldn't discount it. Knowing which suburbs are solid vs which ones look cheap for a reason is half the battle for a first deal, and most out-of-state investors don't have that. On the BRRRR vs flip question, I'd lean BRRRR for a first out-of-state deal just because a flip puts you on a tight timeline and if your contractor runs slow or over budget you're burning holding costs with no rental income to offset it. BRRRR gives you more runway.
The team build is the hardest part and honestly takes longer than people expect. I use an AI tool to help me research and vet markets and narrow down where to focus before I start making calls, which saves a lot of time spinning your wheels on the wrong areas. But nothing replaces having one trusted local contact who actually picks up the phone.
- 3moPatrick O'SullivanBusiness MemberProperty Manager · Phoenix, AZ · Member since 2024 · 514 posts · 190 votes
Tina, I think your familiarity with Cleveland is a bigger advantage than most people realize. A lot of out of state investors struggle because they're chasing numbers in markets they don't truly understand. You already have local knowledge that can help you avoid bad areas and spot opportunities others might miss.
For a first remote deal, I'd probably lean toward a BRRRR rather than a flip. Flips can be stressful when you're managing from a distance because every delay or budget overrun eats into your profit. With a BRRRR, you have a little more flexibility and end up with a long term asset at the end of the process.
The biggest challenge is usually building a trustworthy team. Finding a good contractor, property manager, and agent takes time, and it's hard to evaluate people when you're not nearby. I'd spend plenty of time interviewing people and checking references before committing to a deal.
If possible, consider making a trip to Cleveland before you buy. Meeting potential team members in person and driving the neighborhoods can give you a lot more confidence in your decisions.
I'd also suggest keeping the first project relatively simple. A light to moderate rehab is much easier to manage remotely than a full gut renovation. Once you've completed one deal and have a team you trust, expanding becomes much easier.
What type of property are you hoping to buy first, a single family home or a small multifamily?
get MULTIfamily Property Management4.7220 Reviews - Rental Property Investor · Boynton Beach, FL · Member since 2014 · 273 posts · 197 votes3mo
Not sure why you are looking out of state? My good buddy, an experienced investor moved from Tampa a year ago to Cleveland specifically to acquire RE there at scale, which he did. 300+ units of value add residential rentals. You can easily see the journey Alchemist Nation. I invest outside of Pittsburgh and also in Central Massachusetts. Both places I have a boots on the ground partner since I'm in FL.
- 3moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
You are doing it right but you need to look outside of Phoenix @Tina Doolan. Find a different market where it is landlord-friendly, your dollar goes much further, and where there is tech, job, and population growth.
Connect with an investor agent. Have him connect you with his team of lenders, contractors, property managers. Look at off-market deals and buy them 80-85% of its true-value in turnkey shape or buy them at 75% of ARV for BRRRR/Flip deals.
Make sure to watch out for location, condition (Roof, HVAC, hot water tank, electrical, foundation, and sewer scope), and rentability.
When you re-finance, make sure deal cashflows and breaks even.
ReafCo | Ahmed Group 55 Reviews - Member since 2026 · 4 posts · 0 votes3mo
Hey Tina,
I would not be scared about investing out of state. I am a Builder and General Contractor in Florida and I have worked with investors from the US, South America and Europe. The most important factor here is working with a builder that understands about the actual RE business and not just renovating a kitchen. Find GC's/Builders, ask them for a quote and referrals and you should be able to get a good idea if they will be fit for the job. Feel free to reach out if you have any questions.
-Eduardo
- 3moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 121 votes
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
@Tina Doolan
If you're already familiar with the Cleveland area, that local knowledge can be a huge advantage on a first deal. Out-of-state investing can absolutely work, but having a reliable team is usually more important than the market itself. I'd rather invest remotely in a market I know well than force a deal closer to home just because it's nearby. - 3moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
I am curious considering that you live in cleveland. Why do you want to invest in Phoenix? I live in columbus and own 30+ rental units here and sell over 120+ homes to out of state investors.
They buy here because the market is landlord-friendly, tech companies are shifting/investing here, and the deal flow supply and demand is there alongside cashflow and appreciation.
You should look inside of ohio in my opinion and it is a bonus that you are from the cleveland area.
ReafCo | Ahmed Group 55 Reviews- 2moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Alfath Ahmed:
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
I am curious considering that you live in cleveland. Why do you want to invest in Phoenix? I live in columbus and own 30+ rental units here and sell over 120+ homes to out of state investors.
They buy here because the market is landlord-friendly, tech companies are shifting/investing here, and the deal flow supply and demand is there alongside cashflow and appreciation.
You should look inside of ohio in my opinion and it is a bonus that you are from the cleveland area.
She does not. Read the question fool
- Member since 2026 · 7 posts · 7 votes2mo
Quote from @Alfath Ahmed:
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
I am curious considering that you live in cleveland. Why do you want to invest in Phoenix? I live in columbus and own 30+ rental units here and sell over 120+ homes to out of state investors.
They buy here because the market is landlord-friendly, tech companies are shifting/investing here, and the deal flow supply and demand is there alongside cashflow and appreciation.
You should look inside of ohio in my opinion and it is a bonus that you are from the cleveland area.
I live in Phoenix but would like to invest where I am from, I spent 28 years in Cleveland and it's suburbs so I am very familiar with the area. It's a lower starting off point to get into RE there as compared to any decent area of the metro Phoenix area and all of its surrounding areas. The market really took off here after covid and entry points are really high! Unless you have the right contacts for deals, which I do not...yet!
:)
- 2moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votesThese are the only things that you need and you already mentioned them (agent, lender, contractor, property manager). Get in touch with a good local agent first and they can sort out everything for you. Happy to help!
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews- Member since 2026 · 7 posts · 7 votes2moThank you!
Quote from @Marc Rice:
These are the only things that you need and you already mentioned them (agent, lender, contractor, property manager). Get in touch with a good local agent first and they can sort out everything for you. Happy to help!Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
- 2moTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
Out of state BRRR and flip deals as a first time investor is bad idea. It's the highest risk transaction that I know of...even if it works out (and it probably won't), it's a bad idea.
To actually make a BRRR or flip work, you probably need access to direct to seller deal flow (your own outreach/marketing) or cheap labor (your own crew). You have neither. You're taking on a very high risk (I assume on market/MLS) deal hoping to get lucky. BRRR and flip are cute terms, but let's call it what it really is - you are buying an absolute dumpster fire of a property from 2000 miles away.
A close friend of mine just lost $60k on a flip. He's been investing locally in Houston for 10-12 years with his own crew and great acquisition processes. Nobody goes on podcasts and talks about that, though. It's even a risky strategy for experienced, local operators.
- Member since 2026 · 7 posts · 7 votes2moThanks Travis for your honest input and sharing what your friend went through, losing money on his flip. That's no good! The risks are real!
Quote from @Travis Timmons:
Out of state BRRR and flip deals as a first time investor is bad idea. It's the highest risk transaction that I know of...even if it works out (and it probably won't), it's a bad idea.
To actually make a BRRR or flip work, you probably need access to direct to seller deal flow (your own outreach/marketing) or cheap labor (your own crew). You have neither. You're taking on a very high risk (I assume on market/MLS) deal hoping to get lucky. BRRR and flip are cute terms, but let's call it what it really is - you are buying an absolute dumpster fire of a property from 2000 miles away.
A close friend of mine just lost $60k on a flip. He's been investing locally in Houston for 10-12 years with his own crew and great acquisition processes. Nobody goes on podcasts and talks about that, though. It's even a risky strategy for experienced, local operators.
I am hearing a flip wouldn't be the best strategy to jump right into out of state. BRRR or renting something out that cash flows (minor or moderate updates) would be a great starting point for me. I'd have to do my due diligence so I dont get a total dumpter fire!
- 2moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHi Tina, welcome to BP! A lot of investors successfully start out of state, especially when they already know the market they're investing in, so your familiarity with the Cleveland area is actually a big advantage. In my experience, building the team is usually the most time-consuming part, not finding the property. It takes time to find contractors, property managers, and lenders that communicate well and do what they say they're going to do. The biggest challenge with remote investing is not being able to easily verify things yourself, which makes having trustworthy people on the ground even more important. One thing I'd recommend is spending extra time interviewing team members before buying anything and talking to multiple people in each role. Looking back, I would still choose remote investing if the numbers and market fundamentals made sense because a great deal in another market is often better than forcing a mediocre deal close to home. Since you're already familiar with the Cleveland suburbs, you may have an easier learning curve than most first-time long-distance investors. Just make sure you stay focused on buying a solid deal and building a strong team rather than rushing into your first purchase. Happy to connect and answer any questions you have!
Quote from @Tina Doolan:
I have been doing a lot of research and am hoping to purchase my first investment property this year.
I've been considering BRRRR vs Flipping but where I live in Phoenix, prices are high even in some of the more questionable areas, making it difficult to find good deals.
I am from the Cleveland area and am very familiar with many of the suburbs, so I've been considering investing there instead.
For those of you who have invested out of state, especially on your first deal:
- How difficult was it to build a reliable team (agent, lender, contractor, property manager)?
- What was the biggest challenge you faced?
- Looking back, would you recommend starting remotely or waiting until you could invest closer to home?
I'd appreciate any advice from those who have successfully invested out of state as a beginner.
Jimmy Lieu, Red 1 Realty4.9119 Reviews - 2moAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
You should start wherever you have the best team.
Bartomeo Property Management4.7149 Reviews - Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes2mo
Hi Tina,
If you're already familiar with the Cleveland market, I don't think investing there is necessarily a bad idea just because it's out of state. In many ways, market knowledge is more valuable than proximity. The biggest challenge is building a team you can trust, especially a good agent and contractor, since they'll be your eyes and ears on the ground.
For a first deal, I'd probably lean toward a BRRRR over a flip unless you have experience managing renovations. A rental gives you a little more room for error, whereas flips can get expensive quickly if the timeline or budget slips.
No matter which route you choose, I'd visit the market in person, interview multiple team members, and don't rush into your first deal just because the numbers look good on paper.
Best of luck, and feel free to reach out. My DMs are always open!
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