How/Where to Start Out of State Investing

Out of State Investing
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How/Where to Start Out of State Investing

Robert NebelPro Member
New to Real Estate · NYC · Member since 2025 · 4 posts · 11 votes

Hi everyone,

I am new to real estate, have been on BP for a few months, have been watching/listening to the youtube videos and podcasts. I'm looking for some guidance on where to start my out of state investing joruney.

I currently live in NYC and would rather not live in this area utilizing an FHA as prices can get expensive. So I am looking out of state and wondering where to begin with finding the right market for buy and hold long term investing. Is BP market finder tool up to date with accurate data? Are there other tools I should be utilizing?

Once I find the right market, I will most likely search for a good, local property management company (since this will be my first deal) and then get to analying properties on top of properties to try to find good deals in neighborhoods they are familiar with and have good knowledge of.

If you have any advice or can point me in the right direction, that would be very helpful and appreciated!

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Seth McGatheyBusiness Member
Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 254 votes
5d

You are right to be searching for the right market first. You can use the BP calculator, I honestly have not used it so I can’t speak to its accuracy but I am sure someone else on here will. You also can ask for suggestions of places to invest from the forums and you will get plenty of suggestions. Then you can use AI to help you analyze them.

But what we really need to help you pick is your strategy. Long term, mid term, or short term rentals? Appreciation, cashflow, or something in the middle? Flips, BRRRRs, turnkey? What is your price range? Do you want to be able to easily visit? (Then you might want a place with an airport or close to an airport).

All of these will be big for knowing what market you should go with.

One thing I would change in your strategy is I would recommend your first team member being an investor friendly agent. Property managers are good but an agent can help you find a property manager, and the rest of your team for that matter. In my opinion your team should be 1. Agent 2. Lender 3. Contractors/handymen (especially if it is a BRRRR or Flip) 4. Property manager.

This might come off as self serving since I am an agent. But connecting you with contacts is one of the most important things an agent should be providing you. Plus, you don’t really need a property manager until you have a property to manage, which you will need an agent to get you that property. Also, many investor friendly agents will even manage the property for you but they might not be easy to find looking for property managers, because they will be listed as agents first.

With all that said, if you are looking for a city with
1. decent cashflow (relatively cheap prices with relatively high rents)
2. BRRRR, flip, and turnkey potential
3. mostly STR with some MTR and STR potential for the right location and price
4. Lots of duplexes.
Then feel free to reach out to me about the Milwaukee market. I would be happy to talk about it with you to help you decide if it is right for you. And even if you do, no obligation to use me as an agent, I always recommend people talk to at least 3 of whatever position they are trying to fill.

No matter what market you choose, best of luck to you!

[email protected]708-297-0996
Seth McGathey - Shorewest Realtor4.912 Reviews
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  • Seth McGatheyBusiness Member
    Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 254 votes
    5d

    You are right to be searching for the right market first. You can use the BP calculator, I honestly have not used it so I can’t speak to its accuracy but I am sure someone else on here will. You also can ask for suggestions of places to invest from the forums and you will get plenty of suggestions. Then you can use AI to help you analyze them.

    But what we really need to help you pick is your strategy. Long term, mid term, or short term rentals? Appreciation, cashflow, or something in the middle? Flips, BRRRRs, turnkey? What is your price range? Do you want to be able to easily visit? (Then you might want a place with an airport or close to an airport).

    All of these will be big for knowing what market you should go with.

    One thing I would change in your strategy is I would recommend your first team member being an investor friendly agent. Property managers are good but an agent can help you find a property manager, and the rest of your team for that matter. In my opinion your team should be 1. Agent 2. Lender 3. Contractors/handymen (especially if it is a BRRRR or Flip) 4. Property manager.

    This might come off as self serving since I am an agent. But connecting you with contacts is one of the most important things an agent should be providing you. Plus, you don’t really need a property manager until you have a property to manage, which you will need an agent to get you that property. Also, many investor friendly agents will even manage the property for you but they might not be easy to find looking for property managers, because they will be listed as agents first.

    With all that said, if you are looking for a city with
    1. decent cashflow (relatively cheap prices with relatively high rents)
    2. BRRRR, flip, and turnkey potential
    3. mostly STR with some MTR and STR potential for the right location and price
    4. Lots of duplexes.
    Then feel free to reach out to me about the Milwaukee market. I would be happy to talk about it with you to help you decide if it is right for you. And even if you do, no obligation to use me as an agent, I always recommend people talk to at least 3 of whatever position they are trying to fill.

    No matter what market you choose, best of luck to you!

    [email protected]708-297-0996
    Seth McGathey - Shorewest Realtor4.912 Reviews
    WebsiteView Page
    2Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5d

    Happy to chat on Kansas City. Many Midwest cities are popular for out of state investors

    1Reply
    • Neel Shah
      Member since 2025 · 5 posts · 1 vote
      3d

      Hey! I would love to know your perspectives on the Midwest market!

      0Reply
    • Neel Shah
      Member since 2025 · 5 posts · 1 vote
      3d

      I’m new to out of state investing as well and have family in Kansas City. I live in the east coast

      1Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 391 posts · 157 votes
    5d

    You are on the right track, @Robert Nebel. I would narrow it to two or three markets that fit your budget, then look for steady job and population growth, landlord-friendly rules, and rents that realistically cover taxes, insurance, management, repairs, and vacancy.

    BP's Market Finder is a good starting point, but verify it with Census data and BLS for population and jobs, HUD for rent and housing trends, Zillow or Rentometer for asking rents, Redfin for recent sales, FEMA flood maps, and county tax records. Then talk with a few local property managers about the specific neighborhoods.

    For a first out-of-state deal, I would prioritize a solid neighborhood and dependable local team over the highest projected return. Online data helps you screen markets, but local due diligence is what protects you. Of course, every market and deal is different, so verify the numbers with local professionals before moving forward.

    [email protected]
    WEMBO CPA532 Reviews
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    2Reply
    • Neel Shah
      Member since 2025 · 5 posts · 1 vote
      3d

      This is was helpful and practical in terms of application. Thank you! I needed this

      0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    5d

    @Robert Nebel

    hello. i'd stay within a couple hours so you can still be in person and hands-on, rather than picking a market thousands of miles away. It's not obvious to me that a random LTR in a place you've never been to is going to do anything for you, except cause you to lose money.

    you have great markets within a couple hours, like the Lehigh Valley in PA. if you're serious, i'd go to meetups, tour properties, meet people and network, in person. everyone wants to Internet their way to success right now and it likely won't work. if you sit at your computer and "analyze deals" on the MLS what you'll find is: 0% of them are good for an investor.

    Hope this helps - happy to dialogue further. And here's some light reading about OOS.

    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
    Failed BRR in Memphis TN

    A Cautionary Tale About a Property Manager in Cinncinatti

    2Reply
  • Jeremy White
    Member since 2026 · 11 posts · 6 votes
    5d

    On the tools question: market-level tools are a fine first filter, but I'd also look at the city's own records before committing. Three things I check are permit volume, which shows whether owners and builders are putting money in; code violation and vacant property cases, which show how much distressed inventory there is and in which neighborhoods; and tax delinquency counts. Two neighborhoods with the same rent-to-price ratio can look very different in those records. Disclosure: I research these filings as my business, so I'm biased toward them, but you can look at them yourself for free. Which markets are on your shortlist so far?

    1Reply
  • Matthew Tregoning
    Property Manager · Melbourne, FL · Member since 2019 · 288 posts · 130 votes
    4d

    We manage STRs out of state, and I'd talk to the local manager before getting too attached to a house. Send an actual address and ask who handles an after-hours leak, how they verify a repair, and when you'd hear about a vacancy problem. 'We cover that market' and 'we have someone five minutes away' can be very different answers.

    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 944 votes
    4d
    Quote from @Robert Nebel:

    Hi everyone,

    I am new to real estate, have been on BP for a few months, have been watching/listening to the youtube videos and podcasts. I'm looking for some guidance on where to start my out of state investing joruney.

    I currently live in NYC and would rather not live in this area utilizing an FHA as prices can get expensive. So I am looking out of state and wondering where to begin with finding the right market for buy and hold long term investing. Is BP market finder tool up to date with accurate data? Are there other tools I should be utilizing?

    Once I find the right market, I will most likely search for a good, local property management company (since this will be my first deal) and then get to analying properties on top of properties to try to find good deals in neighborhoods they are familiar with and have good knowledge of.

    If you have any advice or can point me in the right direction, that would be very helpful and appreciated!

    You’re already ahead of the game by saving and learning the numbers before you buy. Between now and spring, I’d focus on getting pre-approved, analyzing as many real deals as you can, and building relationships with a lender, PM, and contractor. Since you’re already looking around southern Wisconsin, I’d also compare nearby Midwest markets. Sometimes a little more distance can mean a much better purchase price and cash flow.

    [email protected]614-418-6081
    1Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    4d

    Hi Robert! I’d start by narrowing down a few markets that fit your buy-and-hold goals, then spend some time learning the neighborhoods and analyzing actual properties. I’d also recommend reading Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties by David Greene. It’s a good resource for anyone looking to invest out of state, and it talks about the importance of having a strong team around you, including a good Realtor, contractor, lender, and property manager. Take your time and get comfortable with the numbers before jumping into a deal.


    [email protected]614-412-2912
    Reafco.512 Reviews
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    0Reply
  • Julia Skiba
    Member since 2026 · 5 posts · 1 vote
    4d

    Have you tried looking at South Carolina yet? It's a great and steady market with alot of expansion. You should check out invest_with_mason on instagram, I watch his videos for tips on 1031 exchange info, insight into the charleston/sc market and just the basics of investing. Good luck!

    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2d

    Welcome, Robert. On Market Finder, I'd treat it as a first filter, not the answer. Check anything it flags against real rent comps and a local property manager's opinion before you get attached.

    A simple test: pick a market, pull ten active listings, and ask a PM or investor-friendly agent what each would rent for and what it would need. If a few still work after taxes, insurance, vacancy, management and reserves, the market deserves a closer look. If none do, move on.

    I was researching Columbus from Portland before moving here in 2020, and a weekend touring properties taught me more than months online. I'm still finding Columbus deals that hit the 1% rule and cash flow, many with $20K to $30K of built-in equity at purchase, but run it through the same test as any other market. Glad to connect and swap notes on what you find, and I'll see where I can help along the way.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6h
    Quote from @Robert Nebel:

    Hi everyone,

    I am new to real estate, have been on BP for a few months, have been watching/listening to the youtube videos and podcasts. I'm looking for some guidance on where to start my out of state investing joruney.

    I currently live in NYC and would rather not live in this area utilizing an FHA as prices can get expensive. So I am looking out of state and wondering where to begin with finding the right market for buy and hold long term investing. Is BP market finder tool up to date with accurate data? Are there other tools I should be utilizing?

    Once I find the right market, I will most likely search for a good, local property management company (since this will be my first deal) and then get to analying properties on top of properties to try to find good deals in neighborhoods they are familiar with and have good knowledge of.

    If you have any advice or can point me in the right direction, that would be very helpful and appreciated!

    I moved from Connecticut to Ohio in 2012 for college. I started buying rentals in 2017. I recommend you give the Buckeye State a try!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
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