Buying rental properties out of state

Out of State Investing
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Buying rental properties out of state

Cesar Coronado
Member since 2025 · 7 posts · 16 votes

Hi everyone! 

I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!

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Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
1y

Cesar,

Good luck finding a property that is $70K or even under $90K and is not "Subject To" that you can get financing on unless you plan to buy it paying "All Cash" if that is the case be prepared to put in another $30 to $40K. If that fits the budget I would recommend looking into Detroit and not in a great neighborhood. Make sure you did all of your homework on section 8 because there are some big Pro's & Con's.

I know a few friends/inventors that purchased 3-4 homes all around $75K to $100K and lost money by "not" being able to find renters due to the neighborhood and how bad the school district is locally.

[email protected]727-637-4289
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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    Cesar,

    Good luck finding a property that is $70K or even under $90K and is not "Subject To" that you can get financing on unless you plan to buy it paying "All Cash" if that is the case be prepared to put in another $30 to $40K. If that fits the budget I would recommend looking into Detroit and not in a great neighborhood. Make sure you did all of your homework on section 8 because there are some big Pro's & Con's.

    I know a few friends/inventors that purchased 3-4 homes all around $75K to $100K and lost money by "not" being able to find renters due to the neighborhood and how bad the school district is locally.

    [email protected]727-637-4289
    5Reply
    • Cesar Coronado
      OP
      Member since 2025 · 7 posts · 16 votes
      1y

      @Jason Wray thanks for the reply! I appreciate the transparency too as I'm still trying to learn what is best before I pull the trigger on anything. Is there any recommendations you may have in regards to zip codes that are worth looking into? We are specifically looking for cash flowing properties.

      0Reply
  • Joseph Bui
    Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
    1y

    Hi Cesar, I’m an out of state investor myself based in Washington where prices are sky high as well. I’ve managed to build an 8 door portfolio across Memphis and Detroit. I’ve worked with a number of agents in various markets, Memphis, Detroit, Indy, St. Louis and others. Happy to connect you to the ones best for investors. 
    if you have any questions around financing your rental, feel free to reach out. I work with a lot of investors to help them with financing their rentals.
    Happy to just connect and knowledge share.

    1Reply
  • Ashley Price
    Lender · OK · Member since 2024 · 46 posts · 11 votes
    1y

    Hello Cesar! 
    I am in an area that has to be your ideal market and not over saturated yet please reach out, I'd love to discuss further information about my location and the opportunities I have funded! 

    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 952 votes
    1y

    @Cesar Coronado

    Hey Cesar! Your numbers look solid, and Section 8 can absolutely work if you do your homework. A few tips:

    • Tenant quality & screening: Section 8 tenants can be reliable, but always have a solid screening process and clear expectations.
    • Local property management: For out-of-state rentals, a good PM is critical—they handle inspections, maintenance, and tenant issues.
    • Market choice: Smaller Midwest cities often offer strong cash flow, affordable prices, and steady rental demand—perfect for starting out.
    • Cash reserves: Even renovated properties need a buffer for unexpected repairs, especially if you’re managing remotely.

    If you want, I can share some practical tips for evaluating neighborhoods and estimating realistic rents for out-of-state investments—stuff that really helped me when I started.

    [email protected]614-418-6081
    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Cesar Coronado

    hello.  this question gets asked ALL THE TIME by California investors.  here's a short answer:

    -yes, this is good to be true. a 70K property is going to be in a challenging area.  there is zero chance your costs will be where you calculated, and that this will go smoothly.  lots of people will make money on that transaction, but not you.

    here are some relevant threads you should read.  note what happened to the investors buying in challenging areas at supposedly attractive price points.

    Avoid Revolution Properties LLC at all costs

    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...

    5Reply
  • Zachary Clevenger
    Investor · Bargersville, IN · Member since 2017 · 95 posts · 52 votes
    1y
    Quote from @Cesar Coronado:

    Hi everyone! 

    I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

    The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


    The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!

    Investing out-of-of state is something that I have yet to do. I (at the moment) cannot move past the fact that not being able to put my eyes on the property, see/know the neighborhood, demographics, nuances, just does not set well with me at this current time.

    For instance you mentioned finding a property for $70k. On paper that sounds fantastic. But what does the property need? What kind of tenants will you attract? What will appreciation and upside look like? How about the neighborhood and surrounding areas -this affects all the previously mentioned.

    Just some things to consider.
    1Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Cesar Coronado:

    Hi everyone! 

    I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

    The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


    The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!

    I would advise to visit the property and neighbourhood you are investing if you are buying a 70k or a 700k house. But, even more important on a 70k house. You are very likely going to find the reality on the ground, for the property and the neighbourhood, is MUCH different then what you are being sold by the very much interested parties trying to sell you this house.

    Your numbers above will evaporate as the house will need major capex spend, your tenants will turn over very fast and your make ready between each tenant will much more expensive than you think. Like 3 or more months of rent (assuming you are collecting it) going out the door for every turnover and yes, out of state investor with one property will pay a lot more then a local landlord.

    The "market" as a group is pretty smart. There are a reasons why the market deems certan houses cheap. 

    Hurst Real Estate, INC4.991 Reviews
    WebsiteView Page
    2Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Cesar Coronado we already responded to your other post.

    You may want to take our points seriously, as well as the warnings given here by @Jason Wray, @Nicholas L., @Jay Hurst and the others to come that warn this is, "too good to be true"!

    If you share the address, we can all give more specific facts to support our warnings...

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    1Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    1y

    @Cesar Coronado

    I've got 11 SFR out of state and have no regrets. I self manage them and five are sec 8. The cash flow numbers are good on paper, but the appreciation will probably be weak. That's ok for me because the cash flow is good and I'm not investing in these areas for high appreciation. I've also got 18 SFR within 30 min of where I live in the Dallas area. Those have good appreciation but much weaker cash flow. So I'm a fan of both properties that have good cash flow but weaker appreciation and properties with low cash flow but good appreciation. That's why I stay diversified. And my cheap crack shacks out of state actually seem easier to self manage for some reason while my turnovers are low so far.

    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Good question, Cesar! those numbers definitely catch your attention. Section 8 can still be a solid strategy where rents are stable and backed by the program. The flip side is that inspections can be strict, payment timelines can vary, and tenant screening is still on you since having a voucher doesn’t automatically mean a low-risk tenant.

    On the surface your math looks reasonable, but it’s worth making sure the payment standards for a 3/1.5 line up with what you’re projecting. Also factor in vacancy, turnover, property taxes, and insurance to see if the monthly cost still holds. A lot of investors do well with this model, but that “too good to be true” feeling usually comes down to missing variables. Happy to keep the convo going if you want to bounce ideas!

    [email protected]614-412-2912
    Reafco.512 Reviews
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    0Reply
  • George SkidisPro Member
    Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
    1y

    Abandon Chicago and look at Southern Illinois. Marion, IL is a great place and prosperity is rolling in. New VA Hospital, upgraded regional airport, Southern Illinois University at Carbondale, Logan College of Chiropractic and much more. There is a Casino in Carterville that is bringing in live entertainment that us seniors enjoy. Acts like Crystal Cayle and so many more. Congressman Mike Bost has done a lot for Southern Illinois. Plus, our Chapter of National REIA, Illinois REIA, is now getting very limited access to some federal foreclosures.

    One of the members of Illinois REIA is a very successful real estate agent. Alyssia Bunting has offices in Marion, Herrin and other cities in Southern Illinois.

    I would not recommend anything much farther north than Springfield our state Capital

    0Reply
  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    1y
    Quote from @Cesar Coronado:

    Hi everyone! 

    I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

    The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


    The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!

    Cesar,
    One last opinion to add to offer a bit more of something positive in favor of your question. I also have friends and investor/customers that did buy a $70K or more home in place like Indianapolis, IN. They put in some cases $30K to $40 into a rundown home "subject to" that in 6-8 month refinanced for over $200K. I mentioned this in another post about out of state using Indiana and Ohio for example.

    But it does take a very seasoned team like a good agent or digging to find the right home in the right place. Plus good GC/builder, handyman, and the ARV is the goal to pull cash out quicker to start the BRRR all over. You can always look at section 8 as the key to your cash flow insurance, but learn the area and ask up front.






    [email protected]727-637-4289
    2Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    1y
    Quote from @Cesar Coronado:

    Hi everyone! 

    I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

    The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


    The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!


     If you're interested in Cleveland you'll want to read The Ultimate Guide to Grading Cleveland Neighborhoods. This guide has helped out countless out of state investors learn what is what when they are buying rentals in Cleveland.

    1Reply
  • Anthony Cirranello
    Member since 2025 · 5 posts · 2 votes
    1y

    Hi everyone I am also looking for out of state investments. My choice is small multifamilies 4-8-10 units.  I'm in the northeast ( one of the most expensive markets ) looking at possibly the mid west states. Where I hear the numbers seems to be more reasonable for cash flow. Looking for passive income more so than equity . Both would be ideal lol. But being 60 yrs of age I need to concentrate more on passive for retirement income.  I'd love to hear from investors or realtors who  can lead me in the right direction. I'm ready to pull the trigger . But of course numbers have to work. Cannot buy retail . Hopefully someone here can help with possibly some off market properties. I'm ready and do have some sources for $$$ to make it happen. Thank you so much 

    Anthony Cirranello 

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

    Hi everyone! 

    I was wondering if I could get some guidance or pointers here. My father and I are looking to get into a venture in real estate, and have been looking at buying and renting properties out of state. We live in California and prices here are a bit too much to comfortably take the risk. We are looking at states like Ohio and Illinois and planning to either do section 8 rentals or just general renting. Is section 8 still a viable option, and if so, what should I be aware of? Other than the fact that you're taking a risk with renters if you don't do your due diligence.

    The numbers add up, the property we are looking at is 70k, and would take a 25% down payment of 17.5k. It's 3 bed and 1.5 bath and is fully renovated. The loan may be about 733 a month, and we can hopefully expect a rent of ~1400 a month from section 8. Assuming a property manager charges us 10% of that, that brings us to a total monthly cost of ~900 a month given small repairs and such.


    The numbers feel good, but I'm just afraid they feel too good to be true. Has anyone here entered this type of market and can provide some wisdom and knowledge for us? I would greatly appreciate it!

    Cool to see you posting here on BP! Love that you and your dad are diving into this together—it’s awesome to have a partner you trust in the game. Section 8 can definitely still be a viable strategy, especially in markets like Ohio and Illinois where affordability and demand are strong. A couple things to keep in mind: rents aren’t always what you expect, since Section 8 bases approvals on Fair Market Rents and area comps, so make sure $1,400 is realistic for that property. You’ll also want to be prepared for annual inspections and possible delays in tenant placement, since the unit has to pass before voucher payments begin. Even with guaranteed rent, screening tenants is still very important, because the tenant is responsible for caring for the property. And since you’re investing out of state, a property manager who is experienced with Section 8 can make or break your experience, so be sure to ask upfront if they handle voucher tenants. Your numbers look solid on paper—$70k all-in with around $500+ of spread after expenses is strong. Just make sure to factor in larger capital expenses like roofs or furnaces, not just small repairs, so you’re not caught off guard down the road. I’ve invested out-of-state myself (moved from Portland to Columbus back in 2020 and built a 10+ rental portfolio here), and my experience has taught me that while the numbers matter, the team matters even more. With the right PM, lender, and boots-on-the-ground agent, this strategy can work really well. Happy to connect and answer any questions you have!


    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hello @Cesar Coronado!

    sounds like you and your father are doing a really solid job running the numbers and thinking this through carefully. That’s a great starting point.

    A couple of thoughts on your situation:

    • Section 8 can be viable – Many investors use it successfully, especially in lower-cost markets like Ohio. The biggest advantages are consistent rent payments from the housing authority and often longer tenant stays. The trade-off is that you’ll need to make sure the property passes Section 8 inspections and that your tenant screening is still strong (voucher doesn’t automatically mean a good tenant).

    • Your numbers do make sense – On paper, ~$1,400 rent against ~$900 in total monthly expenses is a good spread. The thing to double-check is whether that $1,400 rent aligns with the Fair Market Rent (FMR) for your zip code and bedroom count, since the housing authority caps what they'll pay. Also, make sure to budget for CapEx (roof, HVAC, etc.) separately from repairs. That's where many new investors get caught off guard.

    • Market choice matters as much as the deal – Cleveland, Columbus, Dayton, and certain parts of Illinois can all produce deals like this, but the key is neighborhood-level research. A fully renovated property in the right submarket can be a great first step, while the same numbers in a rougher area may mean higher turnover and management headaches.

    • Property management – You’re right to include PM costs in your underwriting. Since you’ll be investing out of state, your PM will be your biggest lever for success. Make sure you’re working with one who has Section 8 experience specifically. Not all do.

    I’m based in Memphis, TN, where Section 8 and long-term rentals are common strategies for out-of-state investors because the buy-in is affordable and rental demand is strong. If Memphis ever comes onto your radar, I’d love to connect and share some insights on our market.

    901-664-1949
    1Reply
  • Joseph TadresPro Member
    Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
    1y

    Section 8 can be a smart way to lock in cash flow, but make sure you screen tenants and keep a repair reserve.

    1Reply
    • James Wise
      Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
      1y
      Quote from @Joseph Tadres:

      Section 8 can be a smart way to lock in cash flow, but make sure you screen tenants and keep a repair reserve.

       A big one, cuz Section 8 tenants are basically caged animals, and you're the one providing the cage.

      0Reply
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