I am in a bad market looking to make my first investment. Where should I invest?

Out of State Investing
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I am in a bad market looking to make my first investment. Where should I invest?

Carson Tuttle
Salt Lake City Utah · Member since 2026 · 2 posts · 8 votes

As the Title says, I am in a bad market, and a soon to be investor.

Where are the best cities/states to invest. I have been looking at potentially Indiana.

What are some of the key things to know when it comes to long distance investing?

What are the steps to getting a loan out of state?

If anyone can help me answer these questions, or at least give me some guidance that would be great and much appreciated!

Thank you!

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
1w

Hi @Carson Tuttle

Do you have family or a network in Indiana? I strongly recommend against picking a market based solely on price point, if that's what you're doing here. Purchasing a rental and putting it into service anywhere is expensive, as you'll have thousands and thousands of dollars in costs and expenses - closing costs on the purchase, rent-ready costs, lease-up costs to get rented out, repairs, turnover, etc.

Unfortunately, returns on non value add LTRs are very, very low right now (again, everywhere). I know this is a real estate forum (and I am still buying), but I am encouraging new investors to think very carefully about where to allocate their cash (and you need cash). 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. If your immediate area is too expensive, can you go out an hour, or two? There's just no substitute for being hands on.

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

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  • Vidit S.Business Member
    Investor · NY · Member since 2018 · 96 posts · 17 votes
    13h

    plenty of markets still have cash-flowing deals... look up data commons by google thats what i used for to find a market where i ended up buying 47 doors and do your own analysis. narrow it down, then check actual rents, vacancy and repair costs with owners in those neighborhoods. You can find them on BP. Also figure out how you will manage. If you want to outsource then may be add "selecting a good PM" as a pre req for the market selection too.

    [email protected]617-716-9019
    Wellrun Property Mgmt (at just 4% of rent)
    WebsiteView Page
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  • Ayush Mishra
    Homeowner · Member since 2023 · 6 posts · 0 votes
    4h

    I really like Buffalo. Just bought here. Great ROI. Very safe and affordable even close to the Delaware Park area.
    I'm planning on getting my property in Ohio.
    You can go to capatlas.pages.dev and filter based on the capatlas score above 60 to get decent ones over all. And select the metric that you care about the most and go to the top ranked metros.

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