New Investor looking out of state, any advice?
Investor · Boston · Member since 2025 · 3 posts · 18 votes
New Investor looking out of state, any advice?
Most Popular Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ voteshello Cody. congrats on your first project. it seems like a lot of investors who chase midwest 'cash flow' get absolutely crushed by rough tenant turnovers, high repair costs, high dependencies on people they don't know and deferred maintenance. and, sub-100K properties are going to put you in challenging neighborhoods... as a low price is actually reflective of low demand.
i do think a certain type of investor can make this work, by having an incredible, hyperlocal, hands-on ground game - doing their own maintenance and repairs, self-managing, dealing with tenants in-person, maintaining a network of local trades and local resources available to them, and strong knowledge of individual streets and neighborhoods. but, most OOS investors simply can't replicate that in any way.
so, why not stay within a couple hours of home, where you can be hands-on? even if the price point is higher?
recent posts of recent crushings:
Turnkey Nightmare: Property Manager Ignored My Warning About a Missing A/C…
Nightmare with my property manager - advice needed!
Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)
Out-of-State Landlord Nightmare: 4 Months No Rent, Cleveland Escrow Battle
more posts of previous crushings:
A Cautionary Tale About a Property Manager in Cinncinatti
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...
hope this helps
happy to dialogue further
34 Replies
- 7moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
hello Cody. congrats on your first project. it seems like a lot of investors who chase midwest 'cash flow' get absolutely crushed by rough tenant turnovers, high repair costs, high dependencies on people they don't know and deferred maintenance. and, sub-100K properties are going to put you in challenging neighborhoods... as a low price is actually reflective of low demand.
i do think a certain type of investor can make this work, by having an incredible, hyperlocal, hands-on ground game - doing their own maintenance and repairs, self-managing, dealing with tenants in-person, maintaining a network of local trades and local resources available to them, and strong knowledge of individual streets and neighborhoods. but, most OOS investors simply can't replicate that in any way.
so, why not stay within a couple hours of home, where you can be hands-on? even if the price point is higher?
recent posts of recent crushings:
Turnkey Nightmare: Property Manager Ignored My Warning About a Missing A/C…
Nightmare with my property manager - advice needed!
Feedback Needed: $8.8k Turnover Quote for 2BR Duplex (Half)
Out-of-State Landlord Nightmare: 4 Months No Rent, Cleveland Escrow Battle
more posts of previous crushings:A Cautionary Tale About a Property Manager in Cinncinatti
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...
hope this helps
happy to dialogue further
- 7moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
Logical Property Management4.9469 Reviews - Investor · San Jose, CA · Member since 2026 · 14 posts · 11 votes7mo
Hey Cody, I'm in a similar spot - first-time OOS investor still on the research side, so take this for what it's worth. I was looking at the Midwest initially too but ended up on Phoenix instead, partly because I have a friend in the Chandler area who can actually go walk properties for me. The idea of going somewhere with zero boots on the ground made me nervous, especially with sub-$100K properties where one bad surprise eats a year of cash flow.
Deferred maintenance is what I keep coming back to myself. I've been running numbers on Phoenix for a few months and the properties that look best on paper tend to be older 70s/80s stock where you're kind of hoping nothing big fails in year one. In a desert market my specific worry is the AC - those systems run basically nonstop in summer, and on older houses they can be near end of life without anything obvious showing up in a walkthrough.
Nicholas nailed it on neighborhoods - I've been guilty of looking at comps across too wide a radius and assuming one zip code is consistent when it really isn't. Calling property managers before you have anything under contract to verify rents and get their read on the streets is something I keep hearing as advice and haven't done yet myself. Anyway, you already have one project done which puts you ahead of most people asking the same questions.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes7mo
The OP mentions "hidden issues" that are unexpected, and @Drew Sygit mentions "property condition", but rarely does anybody seem to make specific note of the actual age of the subject property. Age can give you great insight towards current condition and probable future expenditures. You DO need to adjust based on local environmental conditions, as well as visually obvious above or below "normal" care and/or preventative maintenance of specific elements.
Here is a Fannie Mae chart of "Useful Life", and here is a "Study of Life Expectancy of Home Components". Both have many similarities with regard to individual components. Based on 30 years as a PM having inspected thousands of units, IMHO they are both somewhat optimistic as relates to typical Rental units. Nonetheless, to be prepared for "hidden issues" and reasonably account for "property condition" they should be closely considered in your plans.
- Investor · San Jose, CA · Member since 2026 · 14 posts · 11 votes7mo
That environmental conditions point is really relevant for Phoenix specifically. Desert heat is rough on HVAC - systems that would last 15+ years in the Midwest might be looking at 10-12 out there where the AC runs basically nonstop April through October. Good reminder to actually ask what year the HVAC is when you're running numbers, not just assume it's got life left in it.
- Financial Advisor · FL · Member since 2024 · 479 posts · 119 votes7mo
I’d be careful here. You’re targeting exactly where a lot of newer investors get burned.
Sub 100k turnkey in the Midwest usually means you’re in lower tier neighborhoods. That’s where turnovers, maintenance, and management issues can wipe out your “cash flow” fast, which a few people already pointed out .
Out of state doesn’t fail because of the property, it fails because of the team.
If you go this route, focus less on the city and more on:
finding a rock solid property manager first
verifying real rents with them before you buy
staying in B class areas even if price is higherAlso assume your first year will have unexpected expenses. Plumbing, sewer lines, HVAC, those are what kill returns in older turnkey properties.
Personally, I’d either stay closer to home or increase your budget slightly to avoid the rougher assets.
Cash flow on paper is easy. Stable performance is what actually scales.
If you want, send me a deal you’re interested in and I’ll help you stress test it before you jump in.
Stevan
- 7moSamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Cleveland is a great market to invest in if you're looking for cash-flow. Because of that low barrier to entry, plenty of investors from all over are looking at this city. I highly suggest working with an investor friendly agent so you don't buy in the wrong locations.
Reafco - Samuel Diouf528 Reviews- Real Estate Broker · Cleveland, OH · Member since 2023 · 242 posts · 85 votes7mo5 Must Ask Questions Before Hiring a Real Estate Agent
Quote from @Samuel Diouf:
Cleveland is a great market to invest in if you're looking for cash-flow. Because of that low barrier to entry, plenty of investors from all over are looking at this city. I highly suggest working with an investor friendly agent so you don't buy in the wrong locations.
An investor-friendly agent who doesn’t invest is dead weight. Investors don’t need you a coffee buddies, they need someone who’s actually done it, made the mistakes, and can keep them from stepping on the same landmines.
See here for 5 Must Ask Questions Before Hiring a Real Estate Agent
- 7moJames WachobBusiness MemberReal Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 893 votes
Hey @Cody Robert! You’re on the right track moving from a local appreciation play into a cash-flow-focused rental. That’s a common next step for investors coming out of high-cost markets like Boston.
For turnkey under $100K, you’re right! They exist, but you have to be careful. The biggest risks in that price range are exactly what you mentioned: major systems (plumbing, sewer, roof, HVAC). That’s why inspections, sewer scopes, and having a solid property manager before you buy are critical. A good PM will tell you quickly if a deal is actually rent-ready or a headache.
Market-wise, Missouri and Alabama can work, but you’ll often find more consistency in places with stronger rent-to-price ratios and established investor infrastructure. Memphis is one market that continues to stand out. You can still find properties in that price range that rent well, and the yields tend to be higher than many comparable markets. In fact, Memphis regularly shows rental yields around 8%+ with relatively affordable entry prices, which is why so many out-of-state investors target it .
The key though isn’t just the city, it’s buying in the right pockets and working with the right team. That’s what helps you avoid those “hidden issues” and tenant headaches.
I’m a real estate agent based in Memphis and work with out-of-state investors doing exactly what you’re describing! Helping them find solid, rent-ready properties and connecting them with property management (we work closely with FoundationPM). If you’re open to Memphis, I’d be happy to help you compare deals and see what actually makes sense from a numbers and risk standpoint.
- 7moBianca BarcelosBusiness MemberNH · Member since 2026 · 88 posts · 48 votes
Any interested in staying in New England for the next deal? I’m based in New Hampshire, and I can recommend that the jump from MA to NH. A lot of folks are moving up here full time, short term rentals in the mountains/lakes do very well with locals and out-of-staters alike, and even mid-term rentals with all the awesome hospitals we have around here. Definitely don't sleep on Southern NH if that makes sense for you (specifically the Salem or Manchester, NH area).
Manchester was actually recently ranked as one of the hottest markets in the country for 2026. NH is very investor-friendly regarding landlord-tenant laws compared to MA.
I'm a local Realtor/investor here and would love to connect to help you find the right team at a drivable distance. It sounds like you know what you're doing and you have the resources to support it but I'm happy to help you run some numbers, talk strategy, or connect you with my go-to lenders, property management teams, and trades folks in the area.
Good luck with the search!
Bianca Barcelos, Real Estate55 Reviews - 7moTodd AndersonPro MemberReal Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
Congrats on the first dive into REI. A house hack is most times the best way to get started.
There is another way to do OOS investing that solves for a few of the problems that you have mentioned. Have you looked into buying New Construction properties.
When I talk with investors who are looking to invest OOS, I normally bring up the idea of investing in a new build. this takes all the problems with repairs right off the table. It also benefits in other ways. Normally you are in a better area because the builder is looking for a nice neighborhood. It will attract better tenants that normally stay longer. It also appreciated better because it is compared to other New Construction. One last thing is many times you can get far better terms that existing homes. I have helped investors get interest rate buydowns to 3.5% and even free property management.
Depending on how you buy it may require more up front but with the incentives that i mentioned we are able to find cash flow and a good COC.
Best of luck on the next investment and let me know if I can answer any more specific questions.
- 7moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
I personally invest in Columbus and love buying here. Landlord friendly state with a ton of tech investments from Intel, Amazon, and Google. Very hard to mess up in a market that is very tech heavy, strong population growth, and job growth.
I'm seeing a ton of Californians buying here as well because of growth and price points. Buy in good markets that hold value and not just the cheapest ones.
ReafCo | Ahmed Group 533 Reviews - 7moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
Nice job getting that first deal done in Boston, that’s a big step. You’re on the right track looking Midwest for cash flow, but I’d focus less on just hitting sub-$100K and more on solid fundamentals like rent stability, condition, and a reliable team. Midwest cities have been strong for that balance, with deals that still cash flow without as many surprises if you underwrite properly. The biggest thing out of state is having the right boots-on-the-ground team, a good property manager, contractor, and someone who can help you vet deals so you’re not walking into hidden issues. Hi Cody from Boston, Massachusetts-
Congratulations on buying a property you are living in now that you are fixing up and plan to rent in a year or so! You are looking for your next property out-of-state and heard the Midwest is doing well. You also wanted to build a team in the market you select and avoid costly mistakes or issues.
We agree the Midwest is in demand for its affordability and relatively high quality of life. It was also not over developed like some other areas of the country experiencing price and rent softness.
You definitely want an experienced local team to help you find, evaluate, and manage properties.
Costly issues include structural issues, main drain issues, or a property not in the path of progress.
We help investors from around the country invest in Michigan with experienced local partners to make sure our clients have a successful ownership experience and continue to build their portfolio with us.
To Your Success!
- Investor · San Antonio, TX · Member since 2026 · 43 posts · 10 votes7mo
Following this closely. I had the same question
- 7moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesWelcome to BP, Cody! Finding a good turnkey property under $100K can definitely take some time, especially when you’re looking out of state, but it’s doable if you focus on markets with strong fundamentals and affordable entry points. The key is building a reliable local team early—an agent who knows the neighborhoods, a property manager you trust, and a contractor for inspections or unexpected repairs—because hidden issues like plumbing, electrical, or roofing can pop up even in turnkey homes, and having people on the ground makes a huge difference. It’s also worth spending extra time on inspections and asking detailed questions about recent updates and maintenance history to avoid surprises. Many investors start with one property to get their feet wet, then expand as they gain confidence with remote management. Having clear systems for communication, regular reporting, and a property manager who handles day-to-day issues will make long-distance investing much smoother and let you focus on growing your portfolio without being tied to the property physically. Happy to connect and answer any questions you have!
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
Jimmy Lieu, Red 1 Realty4.9122 Reviews - New to Real Estate · Los Angeles, CA · Member since 2023 · 83 posts · 29 votes7mo
Great thread. thanks for posting this @Cody Robert
- Investor · Boston · Member since 2025 · 3 posts · 18 votes7mo
Thank you everyone for the insight! I am more than happy with all of the thoughtful responses and information everyone has given me! This is beyond helpful. Please feel free to connect/shoot me a message if you haven't already, I'm open to almost all ideas! Thanks again!!
- 7moMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
Hey Cody. Congrats on the live in flip! That's big!
As a former out of state investor myself, I get it. The Midwest has definitely been good for me and my portfolio. But why not try to repeat the process locally? Midwest is definately hot but if you can repeat what you did locally, that would probably be the most ideal route.
Not to say that going out of state is a bad idea. You can definitely find what you outlined above in Dayton & Cleveland for sure.
Generally speaking, deferred maintenance on properties is a given, no matter how old or new a property is. There will always be issues going on that you'll need to look out for but if you have a solid inspector, local boots around, that should help you get a great understanding of what's going on with the properties. For management, use a property manager that is well versed in the neighborhoods you're going to invest in. They should have a great handle on what is needed from those type of properties.
Happy to connect and share some out of state experiences as well. Both the good and the bad.
Reafco - Mike Paolucci 512 Reviews - 7moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Cody Robert:
Hello everyone! I am fairly new to BP and looking for some advice. I currently live in Boston and finished a buy and live in flip here where I will be refinancing and renting out in the next year or so. This is a long term appreciation/rental play but looking for a different strategy now that I have some experience. I am currently looking for another property to add to the portfolio that is out of state that is turn key and will cash flow a bit. I know the mid west is hot, and I was thinking either Missouri, or Alabama. Trying to find a turn key property under 100k isn't the easiest, but some exist. Any recommendations on best cities to look? My main concerns are the hidden issues on these properties like plumbing/sewer/any big expense I wouldn't expect coming. I also am looking to build a team to hunt and manage the property as well as I am out of state. Any advice is appreciated. Thank you!!
Hey Cody, I am from MA myself and I moved to Columbus, OH and now I own more than 50 units here. Happy to help!
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - Developer · TX · Member since 2026 · 6 posts · 2 votes7mo
Ever thought about Retail Investing? At all time high's in Texas.
- 7moTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
The only people that will suggest investing out of state in sub-100k properties are real estate agents. Any seasoned real estate investor, as you have seen in this thread, will tell you that it is probably a bad idea.
We have all been around for a bit and witnessed the usual cycle - buy cheap property out of state that you would never live in, place tenant, realize that maintenance, repairs, and turnovers are far more expensive than expected, realize that class C/D property management is different than class A/B, see that there has been no appreciation in rents or home value over the course of 2-3 years, sell for a loss.
Leverage + appreciation of price and rents is what makes real estate worth the hassle (and provides better returns than index funds). If a house is $70k, it's because nobody wants to live there. It will appreciate well below the rate of inflation and underperform index funds by a long shot.
- Rental Property Investor · Arlington, VA · Member since 2026 · 1 post · 4 votes7mo
I have a out of state investment team that I'm building in St Louis, Southern IL, and looking at adding Indianapolis, IN in the future. I'm doing all this from Washington DC area... I'd be happy to connect and share what I've learned and how we could possibly work together.
- 7moKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Justin Rittenhouse:
I have a out of state investment team that I'm building in St Louis, Southern IL, and looking at adding Indianapolis, IN in the future. I'm doing all this from Washington DC area... I'd be happy to connect and share what I've learned and how we could possibly work together.
im in central IN and open to connecting
- 7moWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
I think you are on the track but be careful with properties that are too cheap. Sometimes they have hidden problems. In cities like Kansas City and St. Louis you can find stable turnkey options that give you a good cash flow. On the hand places like Birmingham have lower prices to get in and can give you strong returns because they have low taxes. My biggest piece of advice is to build your team first. This means hiring a property manager and a contractor who are local. I believe most investors from, out of state fail, not because of a deal but because they don’t execute well and their property management is poor.
Good luck!
NETWORTH BUILDERS5236 Reviews - Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes7mo
Yes KC is a great market for multifamily and single family.
- Investor · Nashville · Member since 2026 · 37 posts · 11 votes7mo
Great question. I’d keep it simple starting out — really focus on understanding the market you’re targeting, not just surface-level numbers but things like neighborhoods, demand, and exit strategies.
Building a strong local network is huge. Having boots on the ground (agents, contractors, property managers) can make or break an out-of-state deal. A JV on your first deal can also be a smart way to reduce risk and learn the process.
I’d also make sure your financing is lined up early so you can move quickly when something fits.
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