Out of state investing

Out of state investing

Member since 2025 · 65 posts · 68 votes

I have been researching on how to invest out of state due to my local market. I have primarily been focusing on cleaveland oh. 

I feel confident enough to look for a property to purchase however the properties that I am seeing either are old or don't make money. I know the current situation with the market. Should I start in cleavland and look at different sub markets or should I look for another state. 

I currently like the factors of Parma oh so if anyone in oh has some suggestion on how to get my first property here or have suggestions on what my next step should be when looking out of state for my first property 

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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
1y

@Chaim Mal,

You're doing great by taking action and narrowing your focus-that's the hardest part for most first-time out-of-state investors.

Cleveland and its submarkets can work, but you're not wrong - a lot of inventory is older, and unless you're buying updated or turnkey, the maintenance and capex risk can kill your cash flow fast. Parma is a solid submarket- more stable than much of the city -but even there, you'll want to make sure you're running conservative numbers and working with a strong local team.

So, should you start in Cleveland or look elsewhere?
If you're seeing low returns or high risk, it's okay to pivot.
Cleveland works best for investors who:
Have a local or trusted property manager in place
Know how to vet neighborhoods block-by-block
Don’t mind older homes or working with B/C-class tenants

Your next steps:
Compare Cleveland with other cash-flow markets
Consider places like Birmingham, Memphis, Albuquerque, parts of Florida or TX-still affordable, landlord-friendly, and with new builds or fully renovated inventory through turnkey providers.

Decide what matters more: control or speed
If you want to get started now with less headache, look into turnkey rentals in landlord-friendly states. If you prefer to control every step, be ready to dig deeper into PMs, rehab, and inspections in your target market.

Vet your team before buying
The PM, not the property, makes or breaks your out-of-state deal, especially in older markets like Cleveland. Make sure they understand investor needs and have a solid track record.

If you love the idea of Parma but can’t find the right deal, don’t be afraid to expand. A stable, cash-flowing first deal in another market will build your confidence and get you to your goals faster than forcing a deal that doesn’t pencil out.

Always happy to chat more about market comparisons etc.

Best of luck!

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  • Property Manager · Orlando, FL · Member since 2025 · 29 posts · 7 votes
    1y

    If you're interested in Central Florida, let me know! Realtors have listings that are sitting and there's a lot of inventory here to buy and hold for LTR. My team can help you on the property management side. 

  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 499 posts · 553 votes
    1y

    Hi Chaim

    How're you sourcing the deals currently? Also, what areas of Cleveland are you looking at investing in? Depending on those 2 factors, you might not be looking at the right type of deal. Cleveland has been a pretty good for my clients for cashflow. 

    I'd also suggest maybe looking into Dayton. It's a little smaller but also presents a pretty good opportunity to find cash flowing deals.

    • Member since 2025 · 65 posts · 68 votes
      1y

      @Mike Paolucci I currently have a relator who sends me deals and I look at the MLS deals he has set up for me.

      for the most part I really look into Parma and looking into how to move to my next steps 

  • Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hi @Chaim Mal!

    Props to you for doing the research and actually taking action, that’s already more than most! Cleveland and Parma definitely get attention for affordability and rent potential, but as you’ve seen, older properties and thin margins can make the numbers tricky. Especially when factoring in maintenance and management as an out-of-state investor.

    If you're hitting a wall in Cleveland proper, it might be worth expanding your search to other submarkets in Ohio like Akron, Youngstown, or even parts of Dayton. That said, if you’re open to other states, places like Memphis, TN offer really competitive price points (often under $150K), strong rent-to-price ratios, and landlord-friendly laws. I work closely with out-of-state investors here and can tell you firsthand: having reliable boots on the ground (PMs, contractors, agents) makes all the difference when investing remotely.

    Wherever you decide to start, I’d suggest connecting with local investor-friendly agents, walking a few sample deals, and dialing in your criteria. If you'd like to hear more about how investors get their first deal done in Memphis or want help walking through your next steps, happy to share what’s worked for others in your shoes! Keep it up!

  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Chaim Mal:

    I have been researching on how to invest out of state due to my local market. I have primarily been focusing on cleaveland oh. 

    I feel confident enough to look for a property to purchase however the properties that I am seeing either are old or don't make money. I know the current situation with the market. Should I start in cleavland and look at different sub markets or should I look for another state. 

    I currently like the factors of Parma oh so if anyone in oh has some suggestion on how to get my first property here or have suggestions on what my next step should be when looking out of state for my first property 

    Hey Chaim, welcome to BP! You're definitely not alone—tons of investors are turning to out-of-state markets right now, and Ohio is still a solid option if you know where to look. Cleveland has some pockets that work, but like you said, a lot of the inventory is older and the numbers don’t always pencil out unless you're deep into value-add or high-risk strategies. Parma is definitely one of the more stable and desirable suburbs around Cleveland, but because of that, the deals can be tighter and more competitive.


    If you're open to looking a bit beyond Cleveland, I'd recommend checking out Columbus, OH. I moved here from Portland, Oregon back in 2020 and now own 10+ rentals—it's still one of the strongest markets in the state, especially for long-term buy-and-hold. The macro picture here is super solid: big population growth, tons of job creation (thanks to Intel, Amazon, Google, Microsoft, Honda, etc.), and really good infrastructure and school systems in a lot of the suburbs. On top of that, it’s still very doable to find properties in the $120K–$180K range that hit the 1% rule and cash flow from day one. It's also super landlord-friendly, which helps when managing from a distance.


    Whether you stick with Cleveland and focus in on Parma or explore a new market like Columbus, the biggest thing that’ll help is building a strong local team—agent, contractor, PM, etc.—who really knows the submarkets and can help you avoid the costly stuff. Happy to connect and answer any questions you have!



  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
    1y

    @Chaim Mal,

    You're doing great by taking action and narrowing your focus-that's the hardest part for most first-time out-of-state investors.

    Cleveland and its submarkets can work, but you're not wrong - a lot of inventory is older, and unless you're buying updated or turnkey, the maintenance and capex risk can kill your cash flow fast. Parma is a solid submarket- more stable than much of the city -but even there, you'll want to make sure you're running conservative numbers and working with a strong local team.

    So, should you start in Cleveland or look elsewhere?
    If you're seeing low returns or high risk, it's okay to pivot.
    Cleveland works best for investors who:
    Have a local or trusted property manager in place
    Know how to vet neighborhoods block-by-block
    Don’t mind older homes or working with B/C-class tenants

    Your next steps:
    Compare Cleveland with other cash-flow markets
    Consider places like Birmingham, Memphis, Albuquerque, parts of Florida or TX-still affordable, landlord-friendly, and with new builds or fully renovated inventory through turnkey providers.

    Decide what matters more: control or speed
    If you want to get started now with less headache, look into turnkey rentals in landlord-friendly states. If you prefer to control every step, be ready to dig deeper into PMs, rehab, and inspections in your target market.

    Vet your team before buying
    The PM, not the property, makes or breaks your out-of-state deal, especially in older markets like Cleveland. Make sure they understand investor needs and have a solid track record.

    If you love the idea of Parma but can’t find the right deal, don’t be afraid to expand. A stable, cash-flowing first deal in another market will build your confidence and get you to your goals faster than forcing a deal that doesn’t pencil out.

    Always happy to chat more about market comparisons etc.

    Best of luck!

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Chaim Mal guessing you think you have to offer what the seller has listed the property at.

    That's NOT how investing works right now.

    To determine what to offer on a rental property:

    • Determine reasonable market rent, NOT the highest!
    • Deduct NEW property taxes after you buy
    • Deduct home insurance costs
    • Deduct maintenance percentage, typically 10%
    • Deduct vacancy+tenant nonperformance percentage
      (we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)
    • Deduct whatever dollar/percentage of cashflow you want

    Now, what you have left over is the amount for debt service.

    Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.

    Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.

    If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.

    Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.

    As long as the ARV checks out, this is the purchase price to offer.

    It is probably significantly below the asking price. Who cares? If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.

    You may have to analyze 100 properties and make 10 offers to get one accepted at the price that meets your numbers.

    This is what all investors did BEFORE the Great Real Estate Crash of 2008-2010.

    You'll need to work backwards from Target

  • Developer · Ashland, KY · Member since 2025 · 15 posts · 2 votes
    1y

    If you are interested in investing in eastern Ky, I wouldn't mind adding another investor to our portfolio.  We are a tiny home builder, that turn builds in less than 60 days typically.  

  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    1y

    @Chaim Mal

    it is alwasy tough to make the decision to invest out of state. I respect any investor who does that. The key to the entire process is your boots on the ground in that market and who is leading your team on the ground. To me, they also need to be an investor themselves with at least 5+ years of investing expierence. 

    I invest in Memphis TN and I can answer any questions you might have! 

    Best of Luck!

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    1y
    Quote from @Chaim Mal:

    I have been researching on how to invest out of state due to my local market. I have primarily been focusing on cleaveland oh. 

    I feel confident enough to look for a property to purchase however the properties that I am seeing either are old or don't make money. I know the current situation with the market. Should I start in cleavland and look at different sub markets or should I look for another state. 

    I currently like the factors of Parma oh so if anyone in oh has some suggestion on how to get my first property here or have suggestions on what my next step should be when looking out of state for my first property 


    Cleveland, Ohio is a pretty cheap market so I am surprised you cannot find anything there that makes money

  • Real Estate Agent · Houston, TX · Member since 2025 · 59 posts · 31 votes
    1y

    You're definitely on the right track, considering Parma is one of the more stable areas around Cleveland. Older properties can be a pain upfront, but don't count them out. With the right team, they can have strong margin potential, especially if you're open to flipping or BRRRR.

    Curious to know - how are you currently sourcing deals? MLS, wholesalers, agent connections? Most of the best opportunities aren't sitting on public sites for long or at all.

    If you’ve got a local agent or PM in place, they can help you dig into better pockets or even off-market options. And if the numbers still aren’t working, no harm in exploring similar cash-flow markets in other states!

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

    @Chaim Mal

    i would not invest there, if you can't go there in person and get to know an area and a team in person

    a realtor sending you random MLS deals isn't going to cut it

    we just see a lot of folks in your situation buy a property they haven't seen in person, from people they don't know, and end up like this:

    https://www.biggerpockets.com/forums/48/topics/1242392-rough...

    https://www.biggerpockets.com/forums/48/topics/1137397-balti...

    https://www.biggerpockets.com/forums/432/topics/1231840-sell...

    https://www.biggerpockets.com/forums/311/topics/840134-memph...

    https://www.biggerpockets.com/forums/963/topics/1195280-expe...

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

    @Remington Lyman

    would you agree that success is not going to come from sitting on the Internet, looking at random MLS listings from random agents? and this is not specific to Cleveland - it's anywhere right now.

    there are successful investors everywhere and failed investors everywhere.  this is just throwing a dart at the map.

    • Remington LymanBusiness Member
      Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
      1y
      Quote from @Nicholas L.:

      @Remington Lyman

      would you agree that success is not going to come from sitting on the Internet, looking at random MLS listings from random agents? and this is not specific to Cleveland - it's anywhere right now.

      there are successful investors everywhere and failed investors everywhere.  this is just throwing a dart at the map.


      I think different people have different definitions of success. I think the more effort people put into investing, the more likely they are to achieve their goals.

      Yes, you can invest anywhere and be successful. Most investors on this site tend to focus on the cheaper locations which happen to be the midwest.

      I think people should leverage the calculator and write offers at prices that meet their goals. It should not matter what the asking price is

  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Totally hear you, Chaim! Sometimes it just takes zooming in a bit more on submarkets or adjusting your criteria slightly to find the right fit.

    If you’ve already done your research and feel ready to buy, that’s a great place to be. I’d recommend narrowing in on a few zip codes where you like the fundamentals, then start looking at rent comps, rehab needs, and what kind of tenant base you’d be serving. From there, it’s easier to spot what’s a solid deal and what to pass on.

    You’re definitely on the right track! feel free to keep the conversation going if you want to think through any next steps.

  • Seth McGatheyBusiness Member
    Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 254 votes
    1y

    What is your price range you are looking? 
    When you say the properties are old, how old? And why is that a problem? There are lots of old properties that are still great investments. 
    When you say the properties don't make money, what do you mean by that? They don't cashflow? They will lose you money long term? Because most properties if held long enough will eventually make you money. So it depends on how long you can hold them, what it costs to hold them, and why you are holding them. 

    I can't speak to other markets but I know that in my market of Milwaukee WI there are still deals that are profitable and stable. Just last year I bought a $300,000 duplex that current cashflows $500 a month. So it is doable here. Just sometimes takes time to find the right one. 

    If Milwaukee is a place you might consider, feel free to reach out and I can help you decide if Milwaukee is right for you. I am also an agent, so if you need help, I can take you all the way through the transaction and help you build a network of contractors, property managers, lenders, etc. 

    Best of luck! 

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    • Member since 2025 · 65 posts · 68 votes
      1y
      Quote from @Seth McGathey:

      What is your price range you are looking? 
      When you say the properties are old, how old? And why is that a problem? There are lots of old properties that are still great investments. 
      When you say the properties don't make money, what do you mean by that? They don't cashflow? They will lose you money long term? Because most properties if held long enough will eventually make you money. So it depends on how long you can hold them, what it costs to hold them, and why you are holding them. 

      I can't speak to other markets but I know that in my market of Milwaukee WI there are still deals that are profitable and stable. Just last year I bought a $300,000 duplex that current cashflows $500 a month. So it is doable here. Just sometimes takes time to find the right one. 

      If Milwaukee is a place you might consider, feel free to reach out and I can help you decide if Milwaukee is right for you. I am also an agent, so if you need help, I can take you all the way through the transaction and help you build a network of contractors, property managers, lenders, etc. 

      Best of luck! 


       I think the main point i was trying to make is that i dont know how to evaluate deals, know what i am looking for. 

      So when i mean its not profitable or cashflowing i mean the asking price when plugged in with all the other expenses coming out to negative cashflow. 

      Regarding house age, How bad is a 1910

    • Seth McGatheyBusiness Member
      Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 254 votes
      1y

      @Chaim Mal the best way to get good at evaluating properties is to keep doing it. After some time, you eventually will be able to look at the basic info of a property and just know if it is worth looking into further. But working with an investor friendly agent should help. Whatever market you decide to go with, make sure your agent is an investor too. That way they can help you evaluate the properties. 

      Yea, if the properties are coming out negative cashflow, that usually isn't worth doing, especially as a beginner. Some more experienced or already wealthy investors can handle negative cashflow so that they can get the other benefits, but most of us normal people can't afford that. So you need to either look in other neighborhoods, other markets, or increase the down payment % you plan to pay. One other option is if you can BRRRR it, then you can possibly set yourself up for more cashflow without paying more on the down payment. Instead you would be temporarily putting more down for the fixes, but then ideally refinancing to get that money back. This can often allow you to take cheaper purchase and turn it into a better cashflow opportunity.

      1910 is definitely getting old, but I own a single family that was built in 1919. And it is doing great for me. Some stuff is definitely tougher with it than if it was a younger house but everything is still manageable. The few things that have come up are that it has steep stairs and I had to get some electrical work done because it had old cloth wiring. But otherwise it has been a very profitable property. 

      Seth McGathey - Shorewest Realtor4.912 Reviews
    • Rental Property Investor · Member since 2024 · 27 posts · 33 votes
      1y
      Quote from @Chaim Mal:
      Quote from @Seth McGathey:

      What is your price range you are looking? 
      When you say the properties are old, how old? And why is that a problem? There are lots of old properties that are still great investments. 
      When you say the properties don't make money, what do you mean by that? They don't cashflow? They will lose you money long term? Because most properties if held long enough will eventually make you money. So it depends on how long you can hold them, what it costs to hold them, and why you are holding them. 

      I can't speak to other markets but I know that in my market of Milwaukee WI there are still deals that are profitable and stable. Just last year I bought a $300,000 duplex that current cashflows $500 a month. So it is doable here. Just sometimes takes time to find the right one. 

      If Milwaukee is a place you might consider, feel free to reach out and I can help you decide if Milwaukee is right for you. I am also an agent, so if you need help, I can take you all the way through the transaction and help you build a network of contractors, property managers, lenders, etc. 

      Best of luck! 


       I think the main point I was trying to make is that i dont know how to evaluate deals, know what i am looking for. 

      So when i mean its not profitable or cashflowing i mean the asking price when plugged in with all the other expenses coming out to negative cashflow. 

      Regarding house age, How bad is a 1910

      https://www.calculator.net/rental-property-calculator.html

      I find this calculator perfect for analyzing investment properties - and it’s totally free. 
      Punch in all the numbers, and see how much/if it’ll cash flow. 

      It seems like many markets you will only be able to to get real life cash flow (especially with being out of state and paying for property management and all repairs…), if you’re doing a minor rehab… Which I wouldn’t recommend for a new investor, unless you have experience with it and are really good at it. 

      About the age of a property: it really depends. Try speaking to a property manager in the area, and ask him that question.
      Some cities homes are very old. It depends on the condition of the home. Find out if it has any major issues, then to try to get a home inspection, by a reputable, good inspector/company..

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

    Hello @Chaim Mal,
    I hear stories like yours all the time, probably 90% of out-of-state investors hit the same roadblocks with properties that don’t cash-flow or feel like fixer-uppers. Since you’re looking out of state, if you haven’t checked out Memphis yet, I’d say it’s worth a look. I’m based in Memphis with 20+ years helping folks like you build rental portfolios from afar. I’d love to help you get started.

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

    @Chaim Mal

    "Even if i buy locally it possess the same risk as OOS due to me relying on a property manager."

    i strongly disagree with that.  when you're OOS, you're far more reliant on your team.  say an unexpected repair comes up.  OOS, your options are limited.  most PMs are acting in good faith, but they might propose the most expensive option.  if you're closer, you can go to the property, put eyes on yourself, and get 5 quotes if you want.

    I'm just going to try to make my point one more time.  if you buy a random property you haven't seen, and turn it over to people you don't know and have never met, you are very likely to just lose money.  and losing money is far worse than earning 1%. 

    hope this helps

  • Charles ClarkBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
    1y

    @Chaim Mal

    You're on the right track! Cleveland has potential, but submarkets matter a lot. Parma is a solid area—more stable, better tenant base, and fewer headaches than some inner-city spots. I’d recommend digging deeper into Parma and surrounding suburbs before jumping to another state. Connect with local agents, PMs, or investors to help guide your first purchase. Focus on properties that are rent-ready or need minimal work to avoid surprises. Keep going—you’re close!

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  • Real Estate Agent · Memphis, TN. · Member since 2018 · 175 posts · 101 votes
    1y

    We've helped hundreds of investors who are out of state in the Memphis area.  You just have to buy them in the right location and at the right price.  Please be careful....we've seen a lot of people get burned or received bad advice. 

  • Charles ClarkBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
    1y

    @Chaim Mal

    Great to hear you're digging into Cleveland — you're on the right track. Parma is a solid submarket with stable tenants and lower turnover. I'd recommend narrowing in on neighborhoods with strong rent-to-price ratios and decent tenant demand. Don’t be afraid to walk away from bad deals — the first one sets the tone. Happy to chat more if you want help analyzing a deal!

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    @Chaim Mal
    Keep in mind that most real estate in the Midwest and more specifically, Cleveland Ohio, is older. A majority of it was built between 1900 and 1940. In terms of other areas to check out I would recommend looking in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    1y

    @Chaim Mal

    I only work with OOS investors here in Memphis TN. You need to find a team that has their entire business set up to assist the OOS investor. You will also need to team up with someone who is currently investing in the areas you are looking in. You need that personal expierence and knowledge to be successful. 

    My podcast teaches investor how to invest in Memphis TN. Im happy to share that with anyone. (Over 200 episodes)

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  • Real Estate Agent · Memphis, TN. · Member since 2018 · 175 posts · 101 votes
    1y

    Good Luck!  We have seen a lot of success with out of state investors (in the Memphis market).  Let us know if you need any help or advice!  Best wishes!

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