How to know where in the US to look for good real estate deals?

Member since 2026 · 1 post · 7 votes

I live in MA and wish to rent out my home and purchase another. Took out a HELOC and plan is to "up grade " my home and therefore put down 5%. I have a lot of flexibility other than my job currently work in CT. Would like to consider either fix and flip or house hack this next property or even rent it out completely depending on where I find a good deal. Would love to find good out of state options. How do I know which city/state to look into? How do you know where the market is "hot"? Also is investing in condos fixing them up and flipping valuable ?

Thank you you all. Appreciate the insight.

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James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes

Saw Cleveland get mentioned. Cleveland can be good, or bad. The biggest thing out of town investors need to do is figure out what's what in the Cleveland market. You can really get yourself in trouble just looking at the best priced properties on Zillow. There are reasons why properties are priced the way they are and if you don't understand those going into it, you'll get smoked.

Check out The Ultimate Guide to Grading Cleveland Neighborhoods to learn the lay of the land so to speak. 1,000's of investors have used this guide to help them minimalize risk when they invest in Cleveland.

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Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
1mo
you get to decide that. what metrics are important to you? what would be your goals? how much could you feasible afford in those markets? people invest in areas based on job numbers, median incomes, population growths, distance from fresh water, anything! literally you get to decide whats important to you.
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1mo
Quote from @Christopher Dastous:

I live in MA and wish to rent out my home and purchase another. Took out a HELOC and plan is to "up grade " my home and therefore put down 5%. I have a lot of flexibility other than my job currently work in CT. Would like to consider either fix and flip or house hack this next property or even rent it out completely depending on where I find a good deal. Would love to find good out of state options. How do I know which city/state to look into? How do you know where the market is "hot"? Also is investing in condos fixing them up and flipping valuable ?

Thank you you all. Appreciate the insight.
Welcome to the community, Christopher! I'd choose the market based on fundamentals rather than trying to find whatever is "hot" right now. I usually look at population and job growth, major employers moving into or expanding in the area, rent-to-price ratios, property taxes, landlord laws, vacancy, and whether the numbers still work without assuming huge appreciation. Since you're open to going out of state, Columbus is one market I'd put on the list. I moved here from Portland in 2020 specifically to invest and now own 10+ rentals here. Central Ohio continues to grow and has a pretty diverse employment base, with major investments from companies like Intel, Amazon, Google, Honda/LG, and Anduril. Depending on the neighborhood, there are still lower-priced properties where the rent-to-price ratio can make sense, which is one reason I like it for buy-and-hold and BRRRR strategies. On condos, they can definitely work for flips, but I'd be more cautious because HOA fees, special assessments, rental restrictions, approval requirements, and comparable sales can limit your upside. I'd underwrite the condo deal based on its actual resale comps and all HOA costs rather than assuming the renovation alone will create enough value. Happy to connect and answer any questions you have!
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 914 votes
1mo
Quote from @Christopher Dastous:

I live in MA and wish to rent out my home and purchase another. Took out a HELOC and plan is to "up grade " my home and therefore put down 5%. I have a lot of flexibility other than my job currently work in CT. Would like to consider either fix and flip or house hack this next property or even rent it out completely depending on where I find a good deal. Would love to find good out of state options. How do I know which city/state to look into? How do you know where the market is "hot"? Also is investing in condos fixing them up and flipping valuable ?

Thank you you all. Appreciate the insight.

I'd start with the numbers rather than trying to find the "hottest" market. Look for areas where the purchase price, rents, taxes, insurance, and rehab costs leave you enough margin for your strategy. If you're open to going out of state, I'd definitely compare Midwest markets, where the lower entry point can give you more options for house hacking, BRRRR, or buy-and-hold. For a first out-of-state deal, having a strong local agent, contractor, lender, and PM is just as important as picking the right city.
[email protected]614-418-6081
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
1mo
I would look into a state where you are able to build out a solid team
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Andrew GlissonBusiness Member
Property Manager · Memphis · Member since 2026 · 135 posts · 95 votes
1mo
Check out Memphis!
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1mo
@Christopher Dastous
fair question but very broad... since we don't know anything about you.
a few thoughts...
house hacking is almost always a good option.
buying in a random state in a market you don't know anything about, just because someone said to, is almost always not a good option.
condo flipping is difficult and IMO not a beginner strategy.
can you break even if you rent out your current house?
i also don't understand what you're proposing with the HELOC. if you add debt to your current situation you'll most likely lose money on it as a rental. a HELOC is not cash...
hope this helps
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1mo
Where do people with optionality choose to live? If those locations have limited supply and meaningful barriers to entry, that is generally a good place to start. Being on the right side of supply and demand is a winning recipe. Real estate investing is often over complicated. A multi-tab spreadsheet with a BRRRR calculator, validating the 1% rule and a lot of other metrics you have been taught the validate investments will do a better job of justifying why you should invest in a C/D neighborhood lacking the characteristics I just described.
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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
1mo
Hey Christopher,

I’d start with your finances and investment goals before worrying about which city is “hot.” A good deal is going to look different depending on what you can afford, how much cash you have available, how much leverage you’re comfortable with, and whether your priority is cash flow, appreciation, or a flip.

Since you’re considering a house hack, flip, or rental, I’d first narrow down which strategy actually makes the most sense for your current financial position. From there, you can start looking at markets that support that strategy.

For example, if you want to house hack, you probably want to prioritize markets where you can actually afford a property with your 5% down while still having reasonable rents. If you’re looking to flip, you’ll care much more about the spread between the purchase price, renovation costs, and realistic resale value.

I also wouldn’t get too caught up in finding the “hottest” market. Hot markets can be great, but they can also mean higher acquisition prices and more competition. I’d look for markets with fundamentals that make sense for your strategy, then drill down into specific neighborhoods and individual deals.

And since you’re flexible with location, I’d consider markets outside of MA and CT, but only after you know what your numbers need to look like. The market should fit your investment strategy, not the other way around.

As for condos, they can absolutely be flipped, but I'd be more cautious. HOA fees, special assessments, financing restrictions, and the rules around renovations can all affect your margins. You really need to understand the specific building and HOA before assuming there's a good flip opportunity.
Good luck, and feel free to reach out - my DMs are always open!

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Dan HandfordPro Member
Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
1mo
Before selecting another market, I would make sure the current house works as a rental after the HELOC payment, vacancy, repairs, capital expenditures, management, taxes, and insurance. A HELOC is additional leverage, so the two-property plan should still be comfortable under a vacancy or repair scenario. For the next purchase, build a scorecard around one strategy instead of searching for a generally hot city. Compare entry price, realistic rent, taxes, insurance, supply, employment diversity, vacancy, landlord rules, and the quality of the local team. Because your job is in Connecticut, a house hack within practical reach may offer a lower-execution-risk first step than managing an unfamiliar out-of-state renovation. Condos can work, but review the association's reserves, recent meeting minutes, insurance, special assessments, renovation rules, and owner-occupancy or rental restrictions before relying on the projected margin.
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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 593 posts · 445 votes
1mo
Christopher, you've gotten nine market pitches, so let me give you the thing nobody selling you a market will: the order of operations. You're asking "which city" third when it should be last.
First question: does your MA house actually work as a rental with the HELOC payment on it? Nicholas already flagged this and it's the whole ballgame. Run the number cold - market rent minus mortgage, HELOC payment, taxes, insurance, 8% vacancy, 10% maintenance, management even if you self-manage. If that's negative, you're not buying a second property with the HELOC, you're buying two problems that share a wallet.
Second: pick ONE strategy before you pick any market, because the strategies want opposite things. A flip wants a market you can drive to - your first rehab WILL go sideways, and you cannot manage a sideways rehab from two states away on your first try. A house hack wants to be within commuting range of your CT job, which draws the map for you. A cash-flow rental is the only one of your three options that genuinely works long-distance as a first move.
Third - IF the answer is cash-flow rental - here's a screening layer none of the nine replies mentioned: in every market you're considering, compare the housing authority's Section 8 payment standard by zip and bedroom count against actual market rent. It's public data. In some zips the voucher pays 10-20% above open-market rent, with most of it arriving by government direct deposit. That spread is the difference between a rental that survives your 5%-down leverage and one that doesn't. I operate a few hundred doors in Memphis on exactly this math, since 2003 - it's why I never have to care whether my market is "hot." Hot is an appreciation bet; you're too leveraged to be making appreciation bets.
And on condo flipping: the HOA owns your exit. Fees, special assessments, rental caps, and financing restrictions on the buyer's side all come out of your margin, and you control none of them. Skip it for round one.
Do the math on your current house first. Everything else follows from that answer.
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
1mo
Quote from @Christopher Dastous:
I live in MA and wish to rent out my home and purchase another. Took out a HELOC and plan is to "up grade " my home and therefore put down 5%. I have a lot of flexibility other than my job currently work in CT. Would like to consider either fix and flip or house hack this next property or even rent it out completely depending on where I find a good deal. Would love to find good out of state options. How do I know which city/state to look into? How do you know where the market is "hot"? Also is investing in condos fixing them up and flipping valuable ?

Thank you you all. Appreciate the insight.
If you are going to house hack then in my opinion you do that in your own back yard.
If you are going to fix and flip then according to ATTOM the best states for fix and flips are Pennsylvania, Ohio, Connecticut and Georgia. Since you live in Connecticut accoring to ATTOM Hartford is a good area, but competition is high and inventory is low. Between the other states we've done deals in Atlanta. ATTOM says Cleveland and Akron are good for flipping, but we prefer Columbus. because of the Ohio State. While ATTOM has not included it I'd put the Chicagoland area on the list.
How do you know where the market is hot?- Our measure of a hot market is average days on market to for properties to sell. The lower the better. We don't measure it buy state. We measure it by neighborhood.
Regarding investing in condos to fix and flip- We've assigned contracts to folks that do that. We're not fans because we do not want HOA's making decisions for us.
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- James Wise
  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
  3w
  Saw Cleveland get mentioned. Cleveland can be good, or bad. The biggest thing out of town investors need to do is figure out what's what in the Cleveland market. You can really get yourself in trouble just looking at the best priced properties on Zillow. There are reasons why properties are priced the way they are and if you don't understand those going into it, you'll get smoked.
  Check out The Ultimate Guide to Grading Cleveland Neighborhoods to learn the lay of the land so to speak. 1,000's of investors have used this guide to help them minimalize risk when they invest in Cleveland.
  1 Reply
Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1mo
Christopher, I’d start with the deal criteria before the city. A “hot” market can still produce a bad investment, while a boring market can produce a very solid rental if the numbers and local fundamentals work.

I'd narrow it down by deciding what you actually want first: house hack, long-term rental, flip, or condo. Then compare a few markets using the same assumptions for rent, property taxes, insurance, vacancy, repairs, CapEx, management, financing, and realistic appreciation. I'd also look at whether you can build a reliable local team if you're buying out of state.

For condos, I'd pay extra attention to HOA financials, reserves, pending assessments, rental restrictions, owner-occupancy requirements, and insurance. A condo can look inexpensive until the HOA becomes the biggest variable in the deal.

Since you already opened a HELOC, keep the use of those funds very clean. HELOC interest generally follows what the borrowed money is used for. If part goes into your current home and another part funds an investment, I'd keep those draws separately traceable so your CPA can determine the correct tax treatment.

If you buy and hold a rental, I’d also evaluate cost segregation once it is placed in service. It can accelerate depreciation, but the important question is whether you can actually use the resulting losses under the passive-loss rules.

If you go the fix-and-flip route instead, that becomes active business income. If flipping becomes consistent, an S-Corp may eventually be worth evaluating, but I would not create one automatically before you know the volume and profit.

I’d compare actual deals in 3–4 markets instead of trying to identify the perfect state first.

Happy to connect!
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James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes
1mo
Hey @Christopher Dastous!
You have a lot of flexibility, which is a great position to be in. I’d start by defining your buy box first. Budget, property type, target return, and whether you want to prioritize cash flow, appreciation, or a combination of both. Then compare a few markets based on actual rents, purchase prices, taxes, insurance, job growth, and inventory rather than simply looking for a “hot” market.

Since you’re open to going out of state, I’d strongly recommend picking one market and learning it deeply before buying. Build relationships with a local investor-friendly agent, property manager, lender, and contractor so you can evaluate deals without having to personally be there for everything.

I’m a real estate agent based in Memphis and work with out-of-state investors building rental portfolios. I also work with FoundationPM.com, so Memphis is a market I’m very familiar with from both the acquisition and property-management side. It can be worth looking at if you want a more affordable market with strong rental demand and cash-flow potential.

As for condos, they can work for flips, but I'd be careful. HOA fees, special assessments, rental restrictions, financing limitations, and the resale market can all impact your numbers. For a first investment, I'd personally favor something where you have more control over the property and expenses.

If you want to explore Memphis or compare it with some of the other markets you're considering, I’d be happy to connect and help you get a better feel for the numbers.
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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
1mo
Hey Christopher,
I think the first thing I'd focus on is that a “good deal” looks different for every investor. A market that works well for a fix and flip may not make sense for a house hack or long-term rental.

Rather than starting with which city is “hot,” I'd start with your strategy and numbers. Look at purchase prices, rents, taxes, insurance, financing, renovation costs, and resale demand, then work backward to determine which markets actually fit your goals.

For out-of-state investing, I'd also spend some time talking with local agents, investors, contractors, and property managers. You can learn a lot about a market that way that you won't necessarily see in the headlines.

As for condos, they can absolutely work for flips, but HOA fees, rules, assessments, and resale demand can have a big impact on the numbers.

All the best! Feel free to reach out. I'm always happy to help in any way I can.
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Seth McGatheyBusiness Member
Real Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 252 votes
1mo
As a lot of the other commenters have said, a good deal and a good market looks different to everyone. So it really depends on your goals and buy box. But I am partial to the midwest. I can't speak for all of it but my local market of Milwaukee is an area you can get solid rent to price ratios as well as have a lot of options for highly reliable tenants with so many colleges and medical centers. But wherever you pick make sure you build a good team before getting to deep. You should have a solid investor friendly agent followed by a solid lender and pre approval. I recommend talking to at least 3 of each. And then make sure they have contacts they can share with you for contractors, property managers, etc.

As far as condos, people do that kind of thing but just make sure you check their rules and regulations thoroughly. They often have rules and limitations (or outright ban) renting. And they may have rules about what changes you can make to the units or require prior approval before making any major changes. So just make sure you know the ins and outs of their rules before you end up in a situation owning a property that you can't renovate or rent. Or one that simply might take a few extra months to renovate with approvals.

If you do end up wanting to dig into the Milwaukee market feel free to reach out. I am happy to talk the market over with you more deeply to help you decide if it is a good fit for your goals.
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Gladimir Lobo
Real Estate Broker · Cleveland, OH · Member since 2023 · 208 posts · 79 votes
1mo
You gotta love BP.

A lot of information/smart people/solid feedback.

But sometimes I read these questions from newer investors and I’m like… we don’t know jack **** about your situation.

You’re asking, “Should I buy this?”
“Should I sell?”
“Is this a good deal?”
“What would you do?”

But we don’t know your background/your money situation/your risk tolerance.
We don’t know the property/the tenant situation/neighborhood.
We don’t know what else you have going on.

So even when the advice is good, how do you know what actually applies to you?

That’s the problem.

The person asking the question doesn’t always know they’re asking it the wrong way.

They don’t know they left out the most important context.

So now they get a bunch of smart answers, but they still can’t really apply the discernment.

Because something can sound good and still be completely wrong for your situation.

And that’s the paradox of the information age.

So much information/so many opinions/ so many people who know what they’re talking about.

And yet, without context, you still may not know what to do with any of it.
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Luis A Torres Feliciano
San Juan Puerto Rico · Member since 2026 · 7 posts · 1 vote
1mo
Puerto Rico is the best option right now, you goin to spend 50% less for the same results
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- Gladimir Lobo
  Real Estate Broker · Cleveland, OH · Member since 2023 · 208 posts · 79 votes
  1mo
  Quote from @Luis A Torres Feliciano:
  
  Puerto Rico is the best option right now, you goin to spend 50% less for the same results
  I love Puerto Rico, Vieques, Loiza, old San Juan, the place is nice. An investor has to be concerned on whether their property can function if that infrastructure is stressed. There's water shortage and everything else that's going on. Now if you got deep pockets. That's not a problem. But for the average Joe? That's a hell no. Man, it's a hard time right now.
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Luis A Torres Feliciano
San Juan Puerto Rico · Member since 2026 · 7 posts · 1 vote
1mo
Puerto Rico is the best option right now, you goin to spend 50% less for the same results
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Luis A Torres Feliciano
San Juan Puerto Rico · Member since 2026 · 7 posts · 1 vote
1mo
You're right, and it's exactly the kind of question more investors should be asking instead of just chasing yield numbers.

Puerto Rico's grid and water system are dealing with real problems — no reason to pretend otherwise. But "deep pockets" isn't actually what solves this. Preparation does.

Every property I work on gets evaluated for exactly this before we even talk about numbers:
- Power: solar + battery backup, contracted through vetted local installers and built into the acquisition budget from day one — not an afterthought after the first outage.
- Water: cistern systems (roof-level or underground), through contractors who specialize in exactly this, so a municipal disruption doesn't mean a non-functioning rental.
Yes, there's a real cost to building in that redundancy — materials, installation, permitting. But that cost is a fraction of what one bad month of vacancy costs you, and once it's in place, it becomes a selling point for tenants, not just insurance.

The honest version of what I do: I've had to build this playbook the hard way, dealing with what actually goes wrong on the ground — not what looks good in a pro forma. And it keeps evolving. New problems show up, I find the next fix.

Bottom line: you don't need deep pockets. You need someone local who's already thought through the failure points before they cost you a tenant.
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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
1mo
Quote from @Christopher Dastous:

I live in MA and wish to rent out my home and purchase another. Took out a HELOC and plan is to "up grade " my home and therefore put down 5%. I have a lot of flexibility other than my job currently work in CT. Would like to consider either fix and flip or house hack this next property or even rent it out completely depending on where I find a good deal. Would love to find good out of state options. How do I know which city/state to look into? How do you know where the market is "hot"? Also is investing in condos fixing them up and flipping valuable ?

Thank you you all. Appreciate the insight.

I am from MA and I started investing in Columbus OH since I was 18. I now own 50+ units here. Happy to connect!
[email protected]614-363-2787
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Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
1mo
There are deals everywhere if you look long enough and hard enough. There are cities to avoid due to the legalities but even in those cities you can find reasons to purchase.
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Milton ChamberlainPro Member
Real Estate Agent · Kansas City, MO · Member since 2019 · 235 posts · 107 votes
1mo
I am happy to share info and stats and give examples of deals for the KC metro
[email protected]573-356-1607
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1mo
@Christopher Dastous
Firstly, one would need to select markets using data and landlord considerations, not just because the markets are "hot" consider things like the P/R ratio, population/job growth, taxes, insurance costs, market inventory, landlord laws, and then look at real transactions. As you will be investing out of state, one needs to be careful about condominiums due to HOA costs, rental restrictions and other special assessments that may wipe out your profit.
Good luck!
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Tomas Jems
Technology · NY · Member since 2026 · 6 posts · 1 vote
8h
This is the classic rate-lock trap and the math rarely favors refinancing right now unless the new rate drop is 1.5%+ or you specifically need the cash out for another deal.
Quick framework: take your current P&I, then model the new rate at your remaining balance and remaining term (not a fresh 30yr, or you're resetting amortization and paying more total interest even at a lower rate). If the new payment plus closing costs doesn't break even within 24-36 months of holding, it's usually not worth touching for a rental you're not selling soon.
The part people miss: refinancing a 2021 loan into a fresh 30yr term almost always increases lifetime interest paid even when the rate is lower, because you're restarting the clock. Worth running both scenarios side by side before deciding.
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Tomas Jems
Technology · NY · Member since 2026 · 6 posts · 1 vote
8h
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