Best Markets To Invest

San Francisco, California
Out of State Investing
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Best Markets To Invest

Josue Ramos
Contractor · Berkeley, CA · Member since 2018 · 4 posts · 13 votes

Hello, my Fellow investors

I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!

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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y

Just pick one. They are all great places to invest. Get on plane and engage all 5 senses though. 10 years from now, it probably  won't really matter. Being a subject matter expert and having a clear strategy is far more important than picking a market. Following the shiny object, throwing money at a market you don't know well, and blindly trusting strangers that have a clear profit motive put you in a poor position to succeed regardless of where you choose to invest.

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  • Donato Callahan
    Member since 2023 · 30 posts · 19 votes
    2y

    Here you go - did some breakdown for you

    https://www.loom.com/share/a381935a865d4022b95e7a89d917407c?...

    4Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Josue, fellow Californian here (and former Bay Area resident). 

    Those are some very different markets you listed. In fact, most of them probably won't show you any positive cash flow.

    Most areas of Texas have been struggling. I'm not an expert in those markets but they've been hit. That could make for some great opportunity on the appreciation front if you believe they will bounce back.

    Columbus is talked about adnauseam on the forums. There is no shortage of realtors excited to give you their take on the market there. It's a bit overdone for me and feels like investing there is late to the party. I'm sure there are great, stable areas in Columbus but I'm not convinced the appreciation has been as strong as most would lead you to believe.

    I don't know much about Cincinnati, but one glance at the median list price over the past 5 years (attached below) would be enough for me to write it off as not appreciating.

    I'm personally partial to Detroit and that's where I invest and do a lot of business with other folks as well. I've attached the median list price for Detroit here as well to compare to something like Cincinnati. 

    Detroit is appreciating rapidly, due to many factors, and it still cash flows or at least allows you to operate near break even. That seems to be extremely unique in today's environment.

    But if you're looking for more tenant stability, some of the options you listed might be a better fit.

    and don't see it talked about a ton here (that may be a good thing)

    0Reply
  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 285 posts · 420 votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!


    Investors with similar goals have found the Columbus market to be a great fit. 

    Cashflow deals are limited to the C location 1-4 unit asset class. The long term growth potential is driven by recent additions to the tech sector (google, intel, amazon, honda, and many start ups). Plans to were announced last month to invest $2B into the cities airport in anticipation of the population/business travel growth. 

    [email protected]614-924-8151
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    4Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    Just pick one. They are all great places to invest. Get on plane and engage all 5 senses though. 10 years from now, it probably  won't really matter. Being a subject matter expert and having a clear strategy is far more important than picking a market. Following the shiny object, throwing money at a market you don't know well, and blindly trusting strangers that have a clear profit motive put you in a poor position to succeed regardless of where you choose to invest.

    8Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 501 posts · 553 votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. 

    Glad to see another Bay Area investor looking out of state. I'm a San Francisco Native and went the out of state route in 2021. I ended up targeting Columbus, OH as my main market so happy to help answer any questions you might have and share my experiences as an OOS investor. 

    I would still target Ohio as a market but I would also be looking into markets like Dayton / Cleveland / Cincy. All 4 of the markets provide different results in terms of appreciation & cashflow. 

    I can't speak too much about the other markets but happy to be resource for you when trying to figure out which market you want to target. I would suggest picking 1 market to focus on though. Once you have more experience and know if REI is right for you, then you can expand into other markets.


    Good luck on your REI journey!

    [email protected]614-892-9184
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    6Reply
  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y

    @Josue Ramos

    I'm definitely bias, but people are still sleeping on Reno, NV. 

    I grew up north of San Francisco and moved out here to live and invest. Best decision I've ever made. 

    4-6% average annual appreciation rate, stable job growth, population growth, drivable to the Bay Area, close to Lake Tahoe, no state income tax, 4th lowest property taxes in the Nation, much more landlord friendly than CA, land constrained meaning limited supply, etc. 

    It may not make sense for you, but I strongly believe it's an option worth considering (I've invested here for many years before becoming an agent here). 

    415-233-1796
    2Reply
  • Christopher WissingPro Member
    Investor · Mckinleyville, Ca. · Member since 2023 · 7 posts · 11 votes
    2y
    Quote from @Jake Andronico:

    @Josue Ramos

    I'm definitely bias, but people are still sleeping on Reno, NV. 

    I grew up north of San Francisco and moved out here to live and invest. Best decision I've ever made. 

    4-6% average annual appreciation rate, stable job growth, population growth, drivable to the Bay Area, close to Lake Tahoe, no state income tax, 4th lowest property taxes in the Nation, much more landlord friendly than CA, land constrained meaning limited supply, etc. 

    It may not make sense for you, but I strongly believe it's an option worth considering (I've invested here for many years before becoming an agent here). 


     Thats good input. I am in North Ca. (way above SF) I had family in Reno for years. I didn't think much about that area either. 

    1Reply
  • Christopher WissingPro Member
    Investor · Mckinleyville, Ca. · Member since 2023 · 7 posts · 11 votes
    2y

    Im on the Northcoast of California and in the same thought process. Looking out of state. Still looking at where. 

    2Reply
  • Joseph Bui
    Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
    2y

    I'm an investor in a couple Midwest markets (Memphis and Detroit) where the cash flow is solid and the appreciation has been very good as well. Still a lot of deals for 100k so I think the midwest is a good place to start or grow your portfolio. Happy to connect and knowledge share.

    3Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!


     Shooting you a message now about Cincinnati/Northern Ky

    [email protected]859-443-4952
    Sam McCormack Realtor
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    0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    I’m in DFW and bullish on RE here. Lots of growth but cash flow is a little weak after the first couple years you buy properties.

    0Reply
  • Taz Zettergren
    Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes
    2y

    @Josue Ramos I would recommend areas like DFW, HOU, SAN, OKC, Tulsa, Memphis or even Little Rock. The higher appreciating plays of these will be in TX or OK but with the higher interest rate that comes with the dscr loan I'd be prepared to put more money down. 

    Are you looking to actively invest or do it passively? 

    0Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 890 votes
    2y

    Great to hear you’re diving into real estate investing! Memphis is definitely worth a closer look. It’s known for its affordable property prices and steady rental demand, which makes it an attractive option for reliable cash flow. The city’s diverse economy, which spans transportation, healthcare, and education, provides a solid foundation for long-term growth. Plus, Memphis has been seeing some positive neighborhood revitalization, which could lead to nice appreciation down the road.

    Of course, all the markets you’re considering—Dallas, Austin, Houston, Columbus, Cincinnati, Nashville, and Las Vegas—have their own unique advantages and potential. Each one offers its own set of opportunities for appreciation and cash flow. The key is to zero in on one market and really dive deep into understanding it. By focusing your efforts on a specific area, you’ll be able to learn all the nuances and make more informed decisions.

    Best of luck with your investment journey! If you have any more questions or need further insights, just let me know.

    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!


    Hi Josue! If I were to start today, I would still choose to do the same thing - house hacking. I started with a house hack when I moved from Portland OR to Columbus OH to start REI. I chose Columbus because of the expansive growth and great macroeconomics. I now own a successful rental portfolio and help my clients do the same. Happy to connect and answer any questions you may have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9121 Reviews
    WebsiteView Page
    0Reply
  • Ray WilliamsBusiness Member
    Lender · Denver, CO · Member since 2017 · 162 posts · 73 votes
    2y

    I agree w/ Travis. Pick one, but pull the trigger. Define your motives, and run with it. 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Josue Ramos

    To invest in Texas markets, consider Dallas, Austin, and Houston, which have seen strong population growth and appreciation. Ohio markets like Columbus and Cincinnati have diversified economies, while Nashville has explosive growth and appreciation. For out-of-state investing, find a trustworthy property management company and network with local real estate investor groups. Diversify your portfolio by investing in high-appreciation and cash-flow markets.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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    3Reply
  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!

    You're a contractor in the Bay Area, I'm guessing you're slammed with work. A live in flip can be lucrative.
    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!

    [email protected]859-443-4952
    Sam McCormack Realtor
    View Page
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2y

    @Josue Ramos

    Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

    If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

    So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

    Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

    Class A Properties:
    Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% the more recent norm.
    Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.

    Class B Properties:
    Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, decent amount of relative rent & value appreciation.
    Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
    Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 years

    Class C Properties:
    Cashflow vs Appreciation: Typically, immediate cashflow and at the lower end of relative rent & value appreciation. Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
    Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

    Class D Properties:
    Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
    Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
    Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    PM us if you’d like to discuss this logical approach in greater detail!

    [email protected]248-209-6824
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    2Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hey Josue, it's great to hear you're interested in both Columbus and Cincinnati! Columbus is known for its appreciation market, driven by major developments like the $20 billion Intel plant, Google's three data centers, and Amazon & Meta acquiring hundreds of acres of land. As for Cincinnati, property prices are comparable to Columbus, and it has also experienced significant growth. Let me know any questions you may have!

    [email protected]614-412-2912
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  • Morgan Tondre
    NJ · Member since 2024 · 207 posts · 91 votes
    2y
    Quote from @Wale Lawal:

    @Josue Ramos

    To invest in Texas markets, consider Dallas, Austin, and Houston, which have seen strong population growth and appreciation. Ohio markets like Columbus and Cincinnati have diversified economies, while Nashville has explosive growth and appreciation. For out-of-state investing, find a trustworthy property management company and network with local real estate investor groups. Diversify your portfolio by investing in high-appreciation and cash-flow markets.

    Good luck!

    @Wale Lawal said it perfectly! 

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y
    Quote from @Morgan Tondre:
    Quote from @Wale Lawal:

    @Josue Ramos

    To invest in Texas markets, consider Dallas, Austin, and Houston, which have seen strong population growth and appreciation. Ohio markets like Columbus and Cincinnati have diversified economies, while Nashville has explosive growth and appreciation. For out-of-state investing, find a trustworthy property management company and network with local real estate investor groups. Diversify your portfolio by investing in high-appreciation and cash-flow markets.

    Good luck!

    @Wale Lawal said it perfectly! 


     My pleasure!

    Keep learning and growing...

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Danny Gonzalez
    Real Estate Broker · Member since 2024 · 134 posts · 62 votes
    2y

    In my experience, Birmingham is a hidden gem for real estate investors. It has all the fundamentals for strong growth, yet it’s still priced affordably because it flies under the radar.

    I’ve put together a 50-page guide that covers everything you need to know about investing in Birmingham. It includes detailed neighborhood breakdowns, market projections, and actionable steps to help you get started.

    If you’re interested in learning more, you can download it for free here:

    freedomventurespm.com/bhamultimateguide

    0Reply
  • Michael Ewers
    Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes
    2y
    Quote from @Josue Ramos:

    Hello, my Fellow investors

    I am looking for my first investment property and I have been researching markets. So far Dallas, Austin, Houston Texas and Columbus, Cincinnati Ohio and Nashville Tennesse and Nevada have caught my interest. I want to ask ya'll seasoned investors if you were starting out today where would you start investing with all the experience and knowledge you have now?

    I goal is to find a market that has good appreciation rate with good to decent cashflow but out of the two appreciation matters more to me. I am already have a good lender that has pre-approved me with a DSCR loan so all I need is to find the right market to invest in!

    I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive. Any advice, suggestions or recommendations to honest investor mindset realtors in these markets would be greatly appreciated!!  Thank you!!


     If you're looking for strong appreciation, Dallas and Houston are great markets. Increasing job growth and a strong economy brings an ideal investment in these markets. Strong rental demands as well.
    If you need any assistance on areas to focus on in these two markets I'd be happy to help!

    2Reply
  • Devin Conley
    San Diego · Member since 2024 · 44 posts · 20 votes
    2y

    Hey @Josue Ramos here are a couple relevant charts on the areas you mentioned. The rent-to-price chart gives an interesting view on the rental markets over time.

    0Reply
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