Out of state investing

[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 

[Melissa Justice]

@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!