What city/ state is heating up?

Realtor · Las Vegas, NV · Member since 2019 · 23 posts · 17 votes

Looking to start my long distance investing with the BRRRR method or simply buy and hold for single family or small multifamily (2-4) under 250k.

Wondering what cities are looking good out there for low median home price, higher cash on cash (9+%) and an appreciating market.

Been looking at tennesse and still hearing a lot about Ohio? Any others i should be looking at?

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

10mo

@Nick Cikity

hello. this question gets asked a lot. i tend to think this isn't the right way to pick a market. for example, you mentioned your dad is from Detroit. do you go there often? do you have some kind of a network there already? if you don't go there often, are you willing to?

so many investors in HCOL areas pick a random area in the midwest to try to BRRRR in, and just get absolutely crushed. it's difficult to do locally, let alone from a computer thousands of miles away.

and, if you BRRRR, you're not going to get any cash flow. it's an equity strategy.

hope this helps. happy to answer any questions you have. i just finished a very modest BRRRR here in Pittsburgh. would not have been able to do what i did out of state.

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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
10mo
@Nick Cikity
I am an Investor and a broker in TX, my suggestion is if your are investing from a distance and want sub $250K deals with strong cash flow, look at TX cities like San Antonio and parts of Fort Worth they still offer solid rents, population growth, and properties in your price range. My view is that Tennessee and Ohio are fine, but TX gives you better long term demand and job growth.
Good luck!
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Danny Gonzalez
Real Estate Broker · Member since 2024 · 131 posts · 61 votes
10mo
I'm surprised no one has mentioned Birmingham yet. I've built a portfolio of 25+ doors here using the BRRRR method and now run a vertically integrated company that helps out-of-state investors buy, rehab, and manage long-term rentals.

For what you’re describing: cash-flowing under $250k, strong rent-to-price ratios, and appreciation, Birmingham checks all the boxes:

Median home prices around $180k

Section 8 rents often $1,100–$1,600 on the right properties

Solid blue-collar tenant base

Plenty of value-add opportunities in B/C neighborhoods

BRRRRs are still very achievable here compared to most markets (we do multiple a month)

Happy to share data on which zip codes are performing well and which to avoid. If you’re looking for boots-on-the-ground support or want to see a few case studies of deals we’ve helped clients execute, feel free to reach out.

When done right, BRRRR is still one of the most effective ways to build long-term wealth. You just need the right market and the right team.
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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9mo
@Nick Cikity thanks for the post here. As you can see, everyone will talk about their own cities. And they probably should, this is where their network is and they have the most familiarity with that market. Which is why I'm going to say what I'm going to say. A 15 year, out-of-state investor my recommendation is to ALWAYS choose whatever city you have the most trustworthy contacts in. Keep in mind that you may never see your asset. That's an ENOURMOUS amount of trust/money to put into a stranger's hands. What I mean here is that if you know someone in a different city...but that city may not have as good as numbers as this "other" city...then stick with the city where you know people. One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another. Your network is the most important piece for any potential returns when you invest out of state.
Hope that makes sense what I am saying.
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- Jackelyn Lee
  Property Manager · Toledo, OH · Member since 2021 · 58 posts · 92 votes
  8mo
  Quote from @Andrew Postell:
  
  @Nick Cikity thanks for the post here. As you can see, everyone will talk about their own cities. And they probably should, this is where their network is and they have the most familiarity with that market. Which is why I'm going to say what I'm going to say. A 15 year, out-of-state investor my recommendation is to ALWAYS choose whatever city you have the most trustworthy contacts in. Keep in mind that you may never see your asset. That's an ENOURMOUS amount of trust/money to put into a stranger's hands. What I mean here is that if you know someone in a different city...but that city may not have as good as numbers as this "other" city...then stick with the city where you know people. One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another. Your network is the most important piece for any potential returns when you invest out of state.
  Hope that makes sense what I am saying.
  
  Agree with this! I am in Toledo, and of course a lot of people come here to BRRRR. But you need a STRONG team in place to make this happen.
  2 Reply
Eric FernwoodBusiness Member
Realtor · Las Vegas, NV · Member since 2014 · 995 posts · 1k+ votes
9mo
Hello @Nick Cikity,
If your goal is long-term financial independence, chasing “hot” markets isn’t the right approach. Long-term financial independence isn’t about replacing your income for a year or two—it’s about having rental income that reliably supports you for 25–35 years. To achieve this, your rents must increase faster than inflation. If rent growth falls behind inflation, your purchasing power shrinks every year. Eventually, you’ll have to go back to work just to maintain your lifestyle. This long-term income performance is determined almost entirely by the city you invest in.

I would only consider cities that meet all the criteria below:
- Rising personal incomes. If local incomes aren’t growing quickly, tenants won’t be able to afford future rent increases.
  
  Here’s an example for Clark County, Nevada (Las Vegas).
- Metro population above 1 million to provide an infrastructure that attracts jobs and residents.
- Strong, sustained population growth. More people = higher demand = rising rents and prices.
- Home prices consistently outpacing inflation. You need appreciation so you can use cash-out refinancing to scale your portfolio without relying heavily on savings.
- Low operating costs. High taxes and insurance eat into the income you need to live on.
- Low crime. High-crime cities struggle to attract employers and long-term tenants. Avoid any city on this list: CBS: The 50 Most Dangerous Cities in America.
- No rent control.
In short: The city determines your long-term income growth. Choose a city that meets all the above criteria.
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Lindsay DavisBusiness Member
Real Estate Broker · Birmingham, AL · Member since 2019 · 326 posts · 203 votes
9mo
@Nick Cikity,

Seconding @Danny Gonzalez here on Birmingham. We’re personally seeing success in zip codes to the west of town, so think areas like Pleasant Grove (35127), Graysville (35073), Adamsville (35005), and the like.

Also worth checking out is Tuscaloosa, a growing college town about 60 miles southwest of downtown Birmingham that’s home to the University of Alabama.

As for Tennessee, we’ve had success in Chattanooga. Areas to the east of downtown, like Avondale (37406) and East Ridge (37412), are particularly interesting if you’re looking for a mix of affordability and growth.

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Kiernan LaFaver
Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes
9mo
Quote from @Nick Cikity:

Looking to start my long distance investing with the BRRRR method or simply buy and hold for single family or small multifamily (2-4) under 250k.
Wondering what cities are looking good out there for low median home price, higher cash on cash (9+%) and an appreciating market.
Been looking at tennesse and still hearing a lot about Ohio? Any others i should be looking at?

Central New York and the Greater Syracuse NY Area. There's both opportunity in the city and suburbs, also single family and multifamily. Properties fairly consistently under the 250K mark, steady tenant pool, and appreciation. I'm talking between 9 and 13% YoY appreciation consistently in both the city and suburbs. Aside from that, central NY is about to get a massive influx of people due to the incoming Micron fab plants expected to construct over the next 10-15 years. I believe lack of housing is going to cause home prices to skyrocket until more mass, affordable housing is built. So it's likely only going to get more expensive. Would be happy to discuss the opportunities in my market!
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Trey Maclin
Property Manager · Eastern Region, US · Member since 2023 · 39 posts · 16 votes
8mo
Cleveland, certain areas of Detroit, Toledo, Columbus. You can find surprising activity in outside area of NC main cities right now due to job shifts. From a management perspective, this is a lot of the new investor activity I am seeing.
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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
8mo
Quote from @Nick Cikity:

Looking to start my long distance investing with the BRRRR method or simply buy and hold for single family or small multifamily (2-4) under 250k.
Wondering what cities are looking good out there for low median home price, higher cash on cash (9+%) and an appreciating market.
Been looking at tennesse and still hearing a lot about Ohio? Any others i should be looking at?
Phoenix is always HOT! :-)
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