Looking start investing out of state for long-term rentals

Out of State Investing
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Looking start investing out of state for long-term rentals

Richard SvichPro Member
Mt Sinai, NY · Member since 2026 · 1 post · 3 votes

Hello!

I'm new to BiggerPockets.

I'm currently living in New York and looking to invest out of state.

Anyone have some suggestions on which cities to best look at for long-term rentals.

Thank you so much!

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 944 votes
    1w
    Quote from @Richard Svich:

    Hello!

    I'm new to BiggerPockets.

    I'm currently living in New York and looking to invest out of state.

    Anyone have some suggestions on which cities to best look at for long-term rentals.

    Thank you so much!

    Welcome! For out-of-state long-term rentals, I’d look at the neighborhood and numbers more than just the city. Since you’re coming from New York, the Midwest is worth putting on your radar, where lower entry prices can give you more room for cash flow. 

    [email protected]614-418-6081
    0Reply
  • Hersh ShahBusiness Member
    Realtor · Atlanta, GA · Member since 2016 · 121 posts · 80 votes
    1w

    Hi Richard, welcome to BP. Before anyone can point you to the right city, the answer depends on a few things:

    1. Cash flow or equity growth? Cheaper Midwest markets usually win on monthly cash flow. Markets like Atlanta are better for building equity: modest cash flow today, but stronger appreciation, rent growth, and job and population growth over a 5–10 year hold.

    2. What's your budget and financing? How much are you looking to invest, and are you buying with cash, conventional, or DSCR loans? That narrows the list fast.

    3. What's your time horizon? If you plan to hold 10+ years, appreciation tends to drive most of the total return. If you need income soon, focus on cash flow.

    4. How hands-on do you want to be? Out of state, your property manager matters just as much as than the city.

    If you share your goals and budget, people here can give you much sharper market suggestions. I work with investors buying in Atlanta, so I'm happy to share what the numbers look like here if equity growth is on your list.

    Hersh Shah Group4.9113 Reviews
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  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 707 posts · 517 votes
    1w

    New Yorker going out of state for cash flow - you're my people. Here's how I'd pick.

    Start with rent-to-price, not vibes. I buy 3BR+ single-family in Memphis ZIPs like 38109, 38111, 38114, and 38118 - all-in under $100K, Section 8 rents $1,395-$1,950, clears the 1% rule. That's the kind of math that survives a property manager and a bad month. If a market can't hit those ratios, it's an appreciation bet, not a cash-flow market.

    Then build the team before you buy: a contractor who gives rehab numbers in 24 hours and a property manager you vetted - not one you found after closing. Out of state, your PM is your business partner. Interview three, check their Section 8 experience, and talk to their owners.

    Finance with DSCR loans at 70-80% LTV. They're built for this - the property qualifies itself, no W-2 gymnastics.

    236 properties, one market, bought deep. Pick one city and learn it cold.

    0Reply
  • Alex S.
    Investor · Washington, US · Member since 2021 · 102 posts · 35 votes
    6d

    Rather than chasing a city list, start by picking 2-3 markets where the numbers actually clear your bar and the laws work for you - New York money often goes to places like Cleveland, Indianapolis, Birmingham, Huntsville, or the Carolinas, but which one fits depends on whether you want cash flow or appreciation. Out of state long-term rentals live or die on the property manager, so interview 3 in a market before you buy anything there and ask them for real rent comps and turnover costs on the exact streets you're considering. Also underwrite with honest numbers: 8-10% management, 8% vacancy, 8% capex, 5% repairs, plus taxes and insurance, because a deal that only works at a 5% expense ratio isn't a deal.

    0Reply
  • Julia Skiba
    Member since 2026 · 5 posts · 1 vote
    3d

    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

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3d

    Happy to chat on Kansas City. For single families the range I see work would be 100-200K. If you can do some sort of value add or TLC then that's where the value is. Tough to pencil turnkey homes.

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2d

    Welcome to BP, Richard. Before picking cities, I'd lock in three things since they point to different markets: your price range, how hands-off you want to be, and whether monthly cash flow or long-term growth matters more.

    Then pick two or three markets instead of ten. Many New York investors look at the Midwest because prices are low relative to rents. I'm in Columbus so I'm biased, but Indianapolis, Cleveland and Cincinnati come up a lot too. Here I'm still finding single families at $120K to $180K that hit the 1% rule and cash flow after expenses, with small multis starting around $200K.

    For each market, ask a couple of local property managers what a typical 3-bed rents for by neighborhood and how long it takes to lease. That tells you more than any city ranking. I enjoy networking with investors working through this decision, so feel free to connect and I'll see if I can help as you narrow it down.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    1d

    Saw Cleveland got mentioned as a potential landing spot. Cleveland looks great on paper, but there is more to it than cheapo houses on Zillow.

    If you're looking at investing in Cleveland, whether it be Section 8, or otherwise, you'll want to review The Ultimate Guide to Grading Cleveland Neighborhoods. Investors have been using that free guide for over 11 years to reduce their risk levels as they learn the Cleveland market.

    https://www.biggerpockets.com/member-blogs/4704/42419-cleveland-neighborhood-grades

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6h
    Quote from @Richard Svich:

    Hello!

    I'm new to BiggerPockets.

    I'm currently living in New York and looking to invest out of state.

    Anyone have some suggestions on which cities to best look at for long-term rentals.

    Thank you so much!

    Welcome to BP!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
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