Choosing a market

[William Breymann]

Hey all, looking for thoughts as I hone in on a market. I had basically settled on Ohio and was between Columbus and Cleveland, but also looking at Dayton. I had connected with a couple RE agents through bigger pockets and they were sending me deals which looked great compared to my home market in Western MA. After I started digging into crime stats and school ratings and looking at street views they didn't look so great though.

We were just in Saratoga, NY and walked a beautiful house that we were talking about partnering on with a family member. It turned out they aren't serious and I'm not ready to take on the risk and work required to manage a hybrid STR/MTR that I believe it would take to make it viable, and also don't want to put the majority of our HELOC into one property. Anyway, I've started looking at spots that actually get me excited. For me this isn't large cities and bars and nightlife but lakes, mountains and beaches and outdoor destinations. Around me in the Northeast, I've been looking in Warwick, RI, Burke, VT, and upstate NY, particularly Saratoga and Lake George areas. All small markets and expensive. Not cash flowing with my financing unless you STR or MTR.

I'm currently considering targeting more affordable metro areas but looking at areas close to parks or natural attractions but also hosptials to open up the option for STR but more so MTR to traveling healthcare folks. I work in healthcare and have met and know many travelers. Currently looking at areas outside of Raleigh, NC (have a family member close) and have moved back to Cleveland as it has Lake Erie which I like.

Anyway, long story just to ask your thoughts on whether I'm thinking too much about the locations and whether I like them vs if they make financial sense. Have had people tell me I won't be spending time there and it doesn't matter which I know is true. On the other hand having a place that we could potentially visit if there were vacancies or could make into a vacation while checking in on it makes sense too. Appreciate any thoughts and curious how you settled on your market, especially if it was out of state?

[Melissa Justice]

@William Breymann,

You're certainly ahead of the curve by digging deeper than just what agents are sending. A lot of people stop at the numbers and forget to consider neighborhood dynamics, tenant quality, or lifestyle fit and it sounds like you’re being very intentional about that.

The smaller/lifestyle-driven markets you mentioned (Warwick, Burke, Lake George, etc.) are great places to personally enjoy, but you're right - they typically only make sense financially if you lean heavily into STR/MTR, which comes with more management intensity and risk. Since you're not ready to dive headfirst into that, pivoting toward affordable metros near natural attractions and hospitals makes a lot of sense. MTRs for traveling healthcare pros is a real niche play, especially since you already work in that space and understand the demand.

One thing to keep in mind is that in some of these more affordable metro areas, especially in the Midwest and Southeast, you can often find properties that still cash flow as long-term rentals and keep the option open for MTR if you want to optimize. On top of that, some sellers in those markets are offering post-closing credits or even rate buydowns right now, which can help the numbers make sense from day one.

If you focus on metros with solid job diversity, healthcare hubs, and proximity to parks/nature (Cleveland suburbs, even other Midwest/Southeast metros), you’ll give yourself multiple exit strategies while keeping cash flow and stability front and center.

Always happy to chat more about what's worked for other investors.

Best of luck!