I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I’m actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
Property Manager · Phoenix, AZ · Member since 2024 · 531 posts · 203 votes
1y
Hi Ying, welcome to the forums and congrats on what you've already built—your current position puts you in a great spot to scale thoughtfully!
You're definitely not alone in finding it tough to make BRRRR work in Phoenix right now. A lot of investors are in the same boat, especially with high acquisition prices and tighter cash flow margins. It's smart that you're also looking into other markets, though as you mentioned, getting comfortable out-of-state takes some effort.
A few thoughts based on your situation:
Local Advantage: As a licensed agent, you already have a huge edge locally. Even if Phoenix deals aren’t penciling today, you might find opportunities in nearby secondary markets where your boots-on-the-ground knowledge still applies—places like Tucson or parts of the West Valley have been mentioned for better cash flow potential.
Out-of-State Strategy: If you do go out-of-state, the key is strong due diligence and building your team before buying. Focus on landlord-friendly states with stable job growth. Many investors have had success in places like Indianapolis, Kansas City, and parts of Ohio and Florida. Just be prepared for a steeper learning curve in the beginning while you're getting familiar with new submarkets and local quirks.
Financing Choices: You mentioned using a 15-year loan—great for building equity quickly, but it does eat into cash flow. Many investors opt for 30-year fixed to maximize monthly spread, especially early on. It might be worth running the numbers both ways on future purchases and seeing which strategy fits your long-term goals best.
BRRRR Today: In this environment, it helps to be flexible—maybe combining a value-add rental strategy with occasional flips or partnerships. Also, keep an eye out for distressed properties where you can force appreciation, which makes the refinance stage of BRRRR much more powerful.
Appreciate you sharing your journey—looking forward to seeing how you continue to grow your portfolio!
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I'm actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
I always tend to prefer local if you can since you have an unfair advantage especially if you are an agent working in the market. You know the market like the back of your hand after you work in it long enough and opportunities will naturally pop up. If your market is too expensive though for your goals or you want to diversify I can speak on out of state since that's primarily what my team does here in the Pittsburgh area.
The main thing is making sure you are working with the right people. This is arguably more important than the market or property type you pick. I have seen too many get burned working with people that aren't honest and are just trying to make a quick buck.
Also once you find people you can trust and know the market inside and out listen to their advice instead of straying from it. If you do well then the team you are working with will also do well because it will be a long term win win relationship.
Also having realistic expectations. If you are buying say an early 1900s build multi family in a lower income C-D class neighborhood and relying on third party property management from across the country it isn't just going to be mailbox money, despite what some may think. Especially the first year or two after purchasing the property until the kinks get worked out and the property is stabilized/running smoothly.
@Jeremy Taggart Thank you for your thoughtful reply and excellent advice! I completely agree that it takes time to build a trustworthy team and I’m committed to gradually assembling a strong team over time. I also took a look at your profile and noticed you work with many out-of-state investors. Perhaps we might have a chance to collaborate on a deal in the future?
@Jeremy Taggart Thank you for your thoughtful reply and excellent advice! I completely agree that it takes time to build a trustworthy team and I’m committed to gradually assembling a strong team over time. I also took a look at your profile and noticed you work with many out-of-state investors. Perhaps we might have a chance to collaborate on a deal in the future?
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I'm actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
I always tend to prefer local if you can since you have an unfair advantage especially if you are an agent working in the market. You know the market like the back of your hand after you work in it long enough and opportunities will naturally pop up. If your market is too expensive though for your goals or you want to diversify I can speak on out of state since that's primarily what my team does here in the Pittsburgh area.
The main thing is making sure you are working with the right people. This is arguably more important than the market or property type you pick. I have seen too many get burned working with people that aren't honest and are just trying to make a quick buck.
Also once you find people you can trust and know the market inside and out listen to their advice instead of straying from it. If you do well then the team you are working with will also do well because it will be a long term win win relationship.
Also having realistic expectations. If you are buying say an early 1900s build multi family in a lower income C-D class neighborhood and relying on third party property management from across the country it isn't just going to be mailbox money, despite what some may think. Especially the first year or two after purchasing the property until the kinks get worked out and the property is stabilized/running smoothly.
I agree with what Jeremy said, however, let me make a few caveats here.
First, I've seen a lot of investors get their license to save money but are only doing their own transactions and don't take the time to learn what they are doing properly so they end up messing up paperwork, missing deadlines (which has caused them to loose handmoney) and make offers that were not financially sound. Just having a license doesn't mean you know what you are doing. You need to really commit to learning the market like a full time agent would. At least for the area and niche you are working. Markets can change pretty quickly and without knowing what is happening in real time you can make choices that aren't as smart as if you were more in tune.
I will 100% agree with making sure you find people you know and trust in the market you are in. For me as an investor and agent that is more then just a great property management company and contractor, that includes speciality contracts (hvac, electricians, plumbers etc) and also other great agents (@Jeremy Taggart is one I absolutely know and trust for example!) When you are looking for good deals, sometimes these agents will have something off market they can share your way and when you are stuck and need a second opinion or value or why something isn't selling/renting you can always reach out for another pair of eyes!
One last thought, no matter how many times you run the numbers or how bulletproof you try to make your investment strategy, know that real estate investing isn't a guaranteed investment solution. 1 bad tenant, 1 market shift, 1 change can take out your profit...but if you troubleshoot your problems, hold tight, and play the long game, in the end, you will end up a winner!
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I'm actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
Welcome Ying! I'd be happy to connect and chat further if you are interested. There are several great meetups throughout the Valley that will be helpful as you figure out next steps in your investing journey.
2.) That's pretty crazy that even with a renovated property and renting by the room you only able to net $200 in cash flow. Which is pretty scary, I would need double that amount to feel comfortable.
I know Phoenix, AZ was like the #1 competitive city for a time (and some will argue it's still is to date). A ton of wholesalers, agents, REIs and hedge funds are working your market. I myself work in a very saturated market but Phoenix is on another level!
I think in your situation it may be a great idea to look elsewhere. I would look for up and coming markets, I see a lot of investors getting into transitional areas in the cities of Ohio and personally we have a lot of out of state investors that work Jacksonville, Tampa and Orlando.
However, nothing really beats you being your "boots on the ground" and knowing your local market.
@Stephen Morales Hi Stephen, thanks for your valuable input! I’ve noticed that in Phoenix, the 1% rule seems almost unattainable—most properties barely reach 0.5%. For my scenario, it might be partly because I’m on a 15-year fixed mortgage instead of a 30-year one; while the monthly difference is only a few hundred dollars, the 30-year option would cost a lot more in interest during the early years. （Do most investors go with 30 year fixed to achieve maximum cash flow?)
I’ve also heard many investors on BP discussing Ohio and Florida as hot spots for out-of-state deals, so I’ll definitely check those regions out.
@Drew Sygit Hi Drew! My answer is zero..and love to hear where to begin. I earned my PhD in Michigan State, worked as a scientist for 5 years in Michigan after that, and have been a law school student for 3 years (did not get the degree yet), and I only recently started my journey in RE.
Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
1y
@Ying Tang Congrats on your new adventure! You have a great foundation started to be very successful in REI. I am in the Tampa area. It also includes, Clearwater, Saint Pete and surrounding beach areas. Since the storms hit us hard, we have an influx of flood damaged homes at fractions of the pre-storm sales prices. I work closely with a contractor that can do the work for you as well. So, I can make it a seamless process and have your already tight knit team ready to get the job done. I would be happy to chat!?
@Mya Toohey Hi Mya! I would love to hear more! It sounds promising but my concerns are 1) would the insurance be higher after that? 2) would the flood hit this area again soon, and 3) for properties like this, is it still easy to get loans (for example, I recently looked into a potential flip but the house condition is so bad the seller agent basically says it's cash only as no lender would lend the money).
New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 455 votes
1y
You're in a strong position, great equity, solid cash flow, and consistent savings. Locally, Phoenix is tight for BRRRR right now due to high prices and slower rent growth. Look for value-add properties in nearby secondary markets where competition is lower but job growth is still strong (e.g., Tucson or parts of the West Valley).
Out-of-state, focus on landlord-friendly states with stable job markets and population growth. Build local teams (agent, PM, contractor) before buying. Markets like Indy, Kansas City, or parts of the Southeast still offer solid cash flow with room for appreciation.
Leverage your agent license for comps and negotiation locally, but don't hesitate to partner or JV out of state while you're learning that market.
If you find a deal and want help running numbers or structuring it, happy to help. Drago
@Drago Stanimirovic Thank you, Drago, for the helpful comments! I looked at your profile and you are a lender? I'm wondering how do cash out loan work and do you deal with cash out loans? Thanks a lot!
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I'm actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
Hi Ying, you should look into the concept of income hacking. It's essentially when you're making a high income in a much more expensive city but investing in another real estate market that is much cheaper and has much more room for growth. You would get a much much better bang for your buck in another real estate market like Columbus Ohio. For 80-200k, you can easily buy 2-4 single family rentals that would all hit the 1% rule, positive cash flow, and get tons of appreciation. It's a super affordable real estate market where you can still find deals that hit the 1% rule anywhere from $120-180k purchase price. It's one of the hottest markets in the US right now with so much population growth, job growth, and companies moving/developing here (26B Intel headquarters being built here, 68K+ enrollment in Ohio State University, Amazon, FB, Google, Honda, Microsoft, LG, Nationwide, Anduril, etc.). Happy to connect and answer any questions you have.
I’m excited to join BiggerPockets as a new investor and realtor based in Phoenix, Arizona. Currently, I own two single-family homes:
1. My primary residence, purchased in 2018 for $550K, is now valued at approximately $900K.
2. A recently renovated property bought in 2023 for $440K with 25% down is managed by a friend’s company. They rent out individual rooms, enabling us to charge slightly above market rates. Despite higher maintenance costs and elevated interest rates, the property generates enough income to cover the mortgage plus an extra $200 in positive cash flow.
Each year, my husband and I save between $80K and $200K for further investments, depending on his annual performance. I also recently obtained my Arizona real estate salesperson license to reduce transaction costs. While I’m actively seeking BRRRR opportunities in Phoenix, generating positive cash flow has proven challenging under current conditions, and price appreciation appears to have slowed.
In addition, I’m exploring investment opportunities out of state, though navigating unfamiliar markets is proving to be even more challenging. I welcome any suggestions, advice, or insights you might have regarding investments both locally and beyond. Thanks in advance for your input!
Lender · Knoxville, TN · Member since 2024 · 112 posts · 23 votes
1y
Institutional lenders, such as banks, generally avoid becoming deeply involved in real estate investing due to inherent risks. These risks become even more pronounced when investing out-of-state. However, investors can significantly mitigate these risks through careful planning and thorough due diligence.
The cornerstone of successful real estate investment is undeniably the property's location, as it directly impacts value, demand, and long-term appreciation. Yet, even with local investments, many investors overlook essential due diligence practices.
Two critical tools can greatly enhance an investor's due diligence process, especially for out-of-state properties: Debt Stack Reports and Collateral DNA Reports. These reports provide detailed insights into a property's financial obligations and asset-backed security, significantly reducing the uncertainty associated with remote investments.
Importance of Debt Stack and Collateral DNS Reports for Out-of-State Investors
When investing in real estate or commercial properties from out-of-state, investors face specific challenges due to limited direct oversight and local knowledge. Debt Stack Reports and Collateral DNS (Debt and Security) reports become critical tools to mitigate risks and enhance informed decision-making. Here’s why:
1. Debt Stack Reports
A Debt Stack report provides comprehensive details about the property's financing structure, including:
Mortgage and Loan Layers: Clearly identifies primary debt (senior loans), mezzanine financing, subordinate debt, and any bridge financing. Understanding each layer's position and terms ensures investors can assess the leverage and risk properly.
Interest Rates and Terms: Highlights interest rates, maturity dates, and prepayment penalties, enabling investors to predict future cash flow obligations and refinancing risks.
Priority of Payments (Waterfall Structure): Clarifies how payments from rental or lease income are allocated among different debt obligations, helping investors evaluate the likelihood of returns.
Debt Coverage Ratios: Provides crucial data like DSCR (Debt Service Coverage Ratio), essential for understanding the property's financial health and stability.
Why It's Important:
Enables investors to accurately assess financial risk, especially critical for investors who aren't locally present.
Provides transparency into financial leverage, helping investors understand how aggressive or conservative the property's financing strategy is.
Facilitates informed investment decisions and ensures alignment with the investor’s risk profile and financial strategy.
2. Collateral DNS Reports (Debt and Security Reports)
Collateral DNS reports detail exactly what assets secure the debt obligations tied to a property, specifying the nature, value, and condition of collateral.
These reports typically include:
Detailed Asset Description: Thorough analysis of physical assets, property location, quality, condition, and any potential environmental or zoning issues.
Lien Priority: Clarity about who holds first and subsequent liens, crucial in cases of foreclosure or default.
Title and Legal Risks: Identifies any pending litigation, encumbrances, easements, title concerns, or legal impediments affecting ownership or usage.
Market Value and Valuation Methodology: Provides the appraisal or valuation methodology that lenders have used to underwrite the loan, enabling investors to verify and trust the reported property value.
Why It's Important:
Critical for assessing security and recoverability in case of borrower default. Investors out-of-state, who often lack immediate, on-site insight, gain valuable transparency.
Helps investors verify that collateral sufficiently covers the debt obligations, providing confidence in asset-backed protections.
Crucial for risk management, due diligence, and validating the property's stated value and condition.
Summary of Importance for Out-of-State Investors:
Debt Stack Reports
Collateral DNS Reports
Clarifies total debt obligations
Confirms collateral’s value and security position
Reveals layers of financing and risk exposure
Identifies asset-backed security and risks
Assists in cash flow and risk forecasting
Validates asset conditions, title, and market value
Ensures informed decisions on leverage
Protects investors from unexpected collateral issues
Conclusion:
For out-of-state investors, Debt Stack Reports and Collateral DNS Reports are indispensable for evaluating investment risks accurately. They provide transparency, reduce uncertainty, and help investors make well-informed decisions, mitigating the potential pitfalls of remote investment scenarios.
@Roger Mace Hi Roger, thanks so much for your comprehensive reply! I really appreciate your detailed breakdown of Debt Stack and Collateral DNS Reports. Your insights have clarified many of the complexities involved in assessing out-of-state investments, and I now have a much clearer roadmap for my due diligence process. Thanks again for sharing your expertise!
Property Manager · Phoenix, AZ · Member since 2024 · 531 posts · 203 votes
1y
Hi Ying, welcome to the forums and congrats on what you've already built—your current position puts you in a great spot to scale thoughtfully!
You're definitely not alone in finding it tough to make BRRRR work in Phoenix right now. A lot of investors are in the same boat, especially with high acquisition prices and tighter cash flow margins. It's smart that you're also looking into other markets, though as you mentioned, getting comfortable out-of-state takes some effort.
A few thoughts based on your situation:
Local Advantage: As a licensed agent, you already have a huge edge locally. Even if Phoenix deals aren’t penciling today, you might find opportunities in nearby secondary markets where your boots-on-the-ground knowledge still applies—places like Tucson or parts of the West Valley have been mentioned for better cash flow potential.
Out-of-State Strategy: If you do go out-of-state, the key is strong due diligence and building your team before buying. Focus on landlord-friendly states with stable job growth. Many investors have had success in places like Indianapolis, Kansas City, and parts of Ohio and Florida. Just be prepared for a steeper learning curve in the beginning while you're getting familiar with new submarkets and local quirks.
Financing Choices: You mentioned using a 15-year loan—great for building equity quickly, but it does eat into cash flow. Many investors opt for 30-year fixed to maximize monthly spread, especially early on. It might be worth running the numbers both ways on future purchases and seeing which strategy fits your long-term goals best.
BRRRR Today: In this environment, it helps to be flexible—maybe combining a value-add rental strategy with occasional flips or partnerships. Also, keep an eye out for distressed properties where you can force appreciation, which makes the refinance stage of BRRRR much more powerful.
Appreciate you sharing your journey—looking forward to seeing how you continue to grow your portfolio!
@Patrick O'Sullivan Thanks so much for your insightful and generous reply. Your expertise and support are truly inspiring, and you touched so many important aspects. Thanks again!!
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 463 posts · 253 votes
1y
Hi Ying in Phoenix, Arizona-
Congratulations on having equity in your primary residence, a cashflow positive rental, and money to look for your next deal.
You like the BRRRR method or Buying, Rehabbing, Renting, Refinancing, and Repeating but are finding that more difficult to do by you and are considering out-of-state markets.
Agree, the Phoenix area is a great area to invest in BRRRRs if you can find the right opportunity.
However, if finding deals is more difficult there, there are several markets in Michigan with rent growth and appreciation where the BRRRR method still works.
They key to working out-of-state markets is the strength of your local team. Having an investor friendly Realtor that can help you find properties where you can add value and give you accurate after repair values is extremely helpful. Then, having a local property manager that can do the rehab work and manage the property after the rehab with a proven record of success is also very helpful.
We have partnerships with highly rated property managers in all of the markets we serve.
@Jeff Roth Hi Jeff, thanks for your comments! It is interesting as I was in Michigan for 10 years with my PhD and previous job. I left and sold my house there which is now double the sold price. How I wish I knew a PM and I would just kept it for rental and it would have great cash flow.
Sounds like you've got a solid foundation, Ying! Since cash flow in Phoenix is tough right now, looking out of state makes a lot of sense. Memphis, for example, has affordable properties, strong rental demand, and solid cash flow potential—even with today's rates. Given your experience with room-by-room rentals, you might find success in areas with high tenant demand near universities or major employers. If you're considering BRRRR, there are still value-add opportunities in the $100K-$200K range in the right neighborhoods. If you want to dive into specific areas or strategies, let's connect—I'd love to help!
@Bernice Retzloff Hi Bernice! Thanks for the reply! I've got so many good suggestions on the potential out of state market, and Memphis sounds promising too! I would like to learn more about the market. Thanks again!!
Real Estate Agent · Indianapolis IN · Member since 2022 · 144 posts · 65 votes
1y
Welcome to BP! Indianapolis Indiana is a popular investor destination. Look into it and let me know if you have any questions about the market. Cheers and good luck wherever you land
Real Estate Agent · Indianapolis IN · Member since 2022 · 144 posts · 65 votes
1y
Welcome to BP! Indianapolis Indiana is a popular investor destination. Look into it and let me know if you have any questions about the market. Cheers and good luck wherever you land
Welcome to BiggerPockets! It's exciting to see your experience and enthusiasm as a new investor and realtor.
For out-of-state investments, I can definitely empathize with the challenge of navigating unfamiliar markets, as we invest in 6 states. One piece of advice I'd give is to start by connecting with local property managers, real estate agents, and investors in those markets. They can provide valuable insights into which areas are seeing the best returns and where there's demand for rental properties. I'd also recommend looking into markets with strong job growth and high rental demand, which often helps to balance out some of the volatility in the real estate market.
If you're open to it, I would also suggest checking out off-market deals or exploring distressed properties in those out-of-state areas, as they can provide you with better margins for cash flow, even when interest rates are higher. It’s all about finding the right mix of cash flow and long-term value.
Lastly, don’t underestimate the value of local networking , you may find a mentor or someone with experience in markets you’re exploring who can guide you as you make more strategic decisions.
Best of luck with your continued journey in real estate! If you ever need any advice or would like to discuss potential out-of-state opportunities, feel free to reach out.
@Laura Navaquin Hi Laura, thanks for the inputs! Very good points about off-market deals, and local networking. Would love to hear more about out of state opportunities. What areas do you work with? Thanks!
Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
1y
Welcome to BiggerPockets! Sounds like you’ve built a solid foundation in Phoenix. Room-by-room rentals can be a great way to boost cash flow, especially in high-demand areas. Given the current market, BRRRRs are definitely trickier, but opportunities still pop up—particularly with off-market deals or value-add multifamily.
For out-of-state investing, networking with local property managers and investors is key. Some markets still offer strong cash flow, but understanding landlord laws, economic trends, and tenant demand is crucial. I hope you find local professionals to help you!
Real Estate Agent · Memphis, TN · Member since 2020 · 46 posts · 85 votes
1y
Hey Ying!
Welcome to the BiggerPockets family and congrats on everything you’ve built so far!
I'm a realtor, investor and property manager here in Memphis and I totally get what you're saying about how tough it can be navigating unfamiliar markets especially when you're trying to balance cash flow, appreciation, and different strategies like BRRRR. I actually bought my investment property using this strategy. I also want you to know upfront. Every market has its quirks, and Memphis is no exception lol.
Here, success really depends on your approach. Are you looking for turnkey properties with immediate cash flow? Value-add plays that need some work? Or long-term holds in appreciating areas? Memphis can check a lot of boxes depending on your goals, but it helps to have someone on the ground who understands the neighborhoods and how investor-friendly certain pockets are.
If you ever want to chat more about what investing in Memphis looks like or need help figuring out if it aligns with your bigger strategy, feel free to PM me. I’d be happy to share what I know and help however I can!
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
1y
Hi Ying,
Welcome to BiggerPockets! Finding cash flow in Phoenix is tough, and Ohio could be a great alternative with lower prices and strong rental demand. Markets like Columbus and Cincinnati are great for room rentals, while Cleveland and Dayton offer solid BRRRR opportunities. The key is having the right team, an investor-friendly agent, good property management, and local lenders.
What’s your main goal: cash flow, appreciation, or both?
Welcome to the BP community. It looks like you've done the right things to start your real estate investing journey. Now you're in the right place to ask questions about how to continue.
Every day, I am hearing the same thing from the investors that I work with about BRRRR. they are able to find deals, but it's hard in today's interest rate world to be able to get money out after the renovation. Most people find that it's hard to get these deals to cash flow.
The investors that I am working with now, are finding that it's easier to invest in new construction to find cash flow. Builders in this market are able to give incentives that allow investors to cash flow day one. In today's market where things have slowed, the builders that I work with are even more ready to deal. many investors find they can get incentives like rate buy downs and free property management.
With the money, your husband and you are saving for investment each year it would be easy for you to grow a very nice portfolio in just a few years. This could be a portfolio of new properties that need little maintenance and could get better appreciation and older properties.
These are just thoughts that I talk to investors about.
You've had a great start. Best of luck in the future.
