First Time Out of State Investing

Out of State Investing
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First Time Out of State Investing

Salvatore Calabrese
Member since 2020 · 1 post · 11 votes

Hi,

I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

Thanks!

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2mo

@Salvatore Calabrese

when you say you "found" them... are they just listed on the MLS? If so, you didn't find them, and if they're just sitting there, it means everyone else who saw them passed on them.

are you located nearby?  or are you out of state?  if you're out of state, proceed with caution - many new investors purchase in a faraway market based solely on purchase price and then lose lots of money because they didn't understand what they were getting into

hope this helps

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2mo

    @Salvatore Calabrese

    when you say you "found" them... are they just listed on the MLS? If so, you didn't find them, and if they're just sitting there, it means everyone else who saw them passed on them.

    are you located nearby?  or are you out of state?  if you're out of state, proceed with caution - many new investors purchase in a faraway market based solely on purchase price and then lose lots of money because they didn't understand what they were getting into

    hope this helps

    2Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!


    Occupied vs. vacant, neither is automatically better. Occupied properties can generate income from day one if the tenants and leases are solid, while vacant properties give you more flexibility to renovate and reset rents. I'd focus more on buying the right deal than whether it's currently occupied.
    [email protected]614-418-6081
    1Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

     You need start looking at major cities if you want to invest inside of Ohio. I don't see much value investing in those cities since the population is lower, not as much job/tech growth. If i was local to those markets, it would make more sense. 

    @Salvatore Calabrese you are better off looking into the major cities like cleveland where you can higher CoC/ROI on investments and all you have to do is buy in decent areas and have a good team of property managers, contractors, banks, and a good realtor.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 55 Reviews
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    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

    Columbus or Cleveland will be a better alternative.

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Kyle Vogeler
    Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes
    2mo

    Salvatore, 

    Congratulations on making the decision to start investing! It is an important decision to make, the next part of investing is staying consistent and disciplined. I encourage you to read/listen to as many real estate books as you can - and take notes while doing so!

    Your questions - although not bad - were very broad and show your beginner status (which is oaky!). But, asking for general insights on the market likely wont get you the information you are looking for - Akron may be a very good area for C-B tier investments but a terrible one for A-tier investments, so the state of the market depends on the property you're looking to invest in and your preference. 

    In addition, there is nothing wrong with vacant or occupied properties. I have had success with both. You determine the value through a deep analysis, and then deal with the vacancy afterword. 

    If you would like to talk more and ask questions, feel free to message me. Always happy to help another investor learn!

    0Reply
  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
    2mo

    Buying a multifamily property with tenants means you need to consider the lease agreements in place, the reliability of the existing tenants, and the condition of the property. It's crucial to perform thorough due diligence, including reviewing tenant agreements and inspecting the property for any potential issues.

    If you opt for a vacant property, you have the freedom to select your tenants and set rental rates based on current market conditions. This can be beneficial if the property needs renovations or if you want to target a specific tenant demographic.

    Ultimately, whether to choose a property with tenants or a vacant one depends on your investment goals, risk tolerance, and how much time and effort you're willing to invest in property management. Consulting with a local real estate expert or property manager could provide you with valuable insights tailored to your specific situation. Good luck with your investment journey!

    [email protected]
    0Reply
  • Nick Sansivero
    Rental Property Investor · Member since 2026 · 56 posts · 29 votes
    2mo

    Hi @Salvatore Calabrese, any specific insights you're looking for? Both markets have been appreciating evenly, with Akron taking a slight lead over the past few years. Happy to help you dive into more data on these 2 locations, such as rental growth and inventory trends. I have about 60+ housing metrics I look at. 

    As for occupied vs vacant, it's up to you. Vacant gives you the flexibility to find a new tenant at market rate, whereas occupied gives you income on day one, but inheriting a tenant comes with risk. Both have pros and cons. But I'd focus more on getting a good deal than whether or not it's vacant. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

    A common inquiry, so Copy & Paste info below:

    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 building a knowledgeable & trustworthy local team.

    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%

    Source: Fair Isaac Company

    Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

    For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.

    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

    https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years
    [email protected]248-209-6824
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  • Mark Mabry
    Lender · Member since 2026 · 13 posts · 5 votes
    2mo

    Hi Salvatore, I've bought some property out of state as well. It's been a great experience. Would love to connect sometime. 

    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    2mo

    Hey Salvatore, welcome to BiggerPockets! I've spent a lot of time investing in Ohio, and both Akron and Toledo can be solid markets if you stay focused on the right neighborhoods.

    Personally, I don't mind buying a property with tenants already in place. If they're paying on time and the rents are close to market, having cash flow from day one is a nice bonus. Vacant properties can be good too, especially if you want to renovate or place your own tenants, but you'll need to factor in the cost of carrying the property while it's empty.

    For me, the location and the numbers matter a lot more than whether the property is occupied. A good deal can be a good deal either way.

    [email protected]614-412-2912
    Reafco.512 Reviews
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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

    The best solution is to buy locally, within driving distance. If you choose not to, you've multiplied the issues, but you will learn.

    Not knowing the history of the property nor the area it's located in, prevents insightful
    comment. Generally, those are tougher areas.
    1Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2mo

    Akron and Toledo are solid starter markets, cash flow is real there and prices are still accessible, but I'd honestly lean toward the tenant-occupied properties because you're buying income from day one instead of scrambling to fill units. From my experience, inherited tenants can go either way, so just pull the leases and check the rents against market rate before you commit.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate539 Reviews
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    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

    Hi Salvatore, welcome to BP! Both Akron and Toledo can work, but I'd spend more time evaluating the specific neighborhood than the city itself. There are solid pockets in both markets, but there are also areas where tenant quality and long-term appreciation can vary quite a bit. As for occupied versus vacant properties, neither is automatically better. A property with good tenants who pay on time and are on solid leases can be a great way to start collecting income on day one. Just make sure you review the leases, rent payment history, security deposits, and verify that the rents are at or near market. A vacant property gives you more flexibility to renovate or set your own rents, but you'll also be covering the mortgage and expenses until it's leased. If you're open to looking at other Ohio markets, I'd also take a look at Columbus. It's had strong job and population growth with major employers like Intel, Google, Amazon, Honda, LG, Microsoft, and Nationwide investing in the area. There are still opportunities to find rentals in the $120K-$180K range that can produce solid cash flow while also offering long-term appreciation potential. Happy to connect and answer any questions you have!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9119 Reviews
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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!


    One thing I'd be careful about is making the decision based on the city instead of the buy box. We've reviewed properties in Akron, Cleveland, Toledo, and a few other Midwest markets, and there were deals we'd pass on in every one of them. The acquisition basis, rehab scope, and exit strategy usually mattered a lot more than the city name.

    Occupied versus vacant has never been the deciding factor for us either. An occupied property can be great if the leases, payment history, and rents support the underwriting. A vacant property can be just as attractive if it gives you the opportunity to renovate and reset rents. We usually start by asking whether the refinance still works after everything is done, then work backward from there.

    Are you looking for a long-term buy-and-hold portfolio, or are you specifically planning to use a BRRRR strategy to recycle your capital?

    [email protected]786-494-6766
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  • Jenna Fawley
    Lender · Pickerington, OH · Member since 2026 · 49 posts · 39 votes
    2mo

    Akron and Toledo can both be good markets, but they’re very neighborhood-specific. One street can look completely different from the next, so I’d really dig into the exact area before getting too excited about the numbers.

    Tenants already in place can be a good thing if they’re paying, leases are solid, and rents are close to market. Vacant isn’t always better, especially from out of state, because now you’re dealing with repairs, leasing, and property management right away.

    I’d probably focus less on occupied vs. vacant and more on the quality of the tenants, condition of the property, local management, and whether the numbers still work with realistic expenses.

    0Reply
  • Samantha Andrews
    Member since 2026 · 35 posts · 45 votes
    2mo

    I started with an out-of-state property as my first investment, and I learned the hard way about many of the things I should have done differently. It was a valuable learning experience, but if I could do it over again, I would have started with a property within driving distance of my home.

    Being close enough to visit regularly makes it much easier to verify the property's condition, get to know the neighborhood, build relationships with local professionals, and respond quickly when issues arise. If you do invest out of state, I'd strongly recommend visiting the property before closing. Walk the neighborhood, see the surrounding area at different times of day, and don't rely solely on photos or inspection reports.

    If you're planning to hire a property manager, meet with several companies in person before making a decision. Ask them to walk you through their processes, reporting, maintenance procedures, and owner communication. The level of organization and transparency they demonstrate upfront is often a good indicator of what you'll experience after closing.

    1Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 490 posts · 549 votes
    2mo
    Quote from @Salvatore Calabrese:

    Hi,

    I'm looking to start investing. I found a few multifamily properties in Akron and Toledo. Any insights on the market in those areas? A couple of the properties already have tenants. Is that usually a good or bad investment? Is it better to find a multifamily that is vacant? 

    Thanks!

    Akron and Toledo are good markets. You'll just need to understand they won't come with much appreciation compared to other markets like Columbus, OH. I've got a few clients getting some great returns on Akron properties. 
    Having tenants in place isn't a bad thing. If they're paying rent to cover the mortgage and all of the expenses on day 1, that's good. As long as they're clearly taking care of the place, I don't think you should have much to worry about. 

    There's no perfect way to invest (vacant / tenant occupied). A lot depends on the current tenants and if they're keeping a clean house. If you buy a place vacant, you at least have the advantage of picking your own tenants and using your own lease, rather than being tied to another person's lease. 

    Either way, there's good and bad that come with both. Like I said before, no perfect way to go about it. 
    [email protected]614-892-9184
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