All Forum Posts by: Bernice Retzloff

Hey @Nicholas Vialpando! Welcome to the investing journey!

You’re absolutely right! Colorado’s a tough market right now with high prices and competition making it hard to find solid cash-flowing rentals. A lot of new investors in your position are starting to look out of state to markets where the numbers still make sense.

If your goal is steady cash flow and long-term stability, here are a few places worth researching:

Memphis, TN – Super landlord-friendly, affordable (you can still find solid single-family homes in the $100K–$150K range), and strong rental demand from both working-class and Section 8 tenants. This is actually where I’m based, and I work with a lot of out-of-state investors helping them build portfolios here through our local property management team at FoundationPM.com.

Birmingham, AL – Similar price points and strong rent-to-price ratios. Great for buy-and-hold investors.

Indianapolis, IN – Stable Midwest market with solid appreciation and a lot of investor activity.

Kansas City, MO – Good mix of affordability, population growth, and diverse job market.

If you’re new, I’d recommend:

1. Picking one market to learn inside and out.

2. Finding an investor-friendly agent and a property manager before you buy.

3. Running the numbers conservatively (factor in property management, maintenance, vacancy).

If you ever want to explore what Memphis could look like for your first deal, I’d be happy to walk you through sample numbers or connect you with resources to get started.

Hey @Benjamin Dolly! Great questions, and you’re clearly doing your homework before jumping in, which is the right move.

Here's the honest take: high leverage (80%+ LTV) can absolutely get you into the game faster, but it does come with tighter cash flow and less flexibility - especially in this interest rate environment. However, that doesn't mean you should automatically sit on the sidelines either.

Here’s how I’d think about it:

1. High leverage = low cash flow, but not always a deal breaker

If your main goal is long-term wealth building and not immediate income, a deal that breaks even or cash flows modestly can still make sense - as long as you’re buying in a market with stable rents and solid appreciation potential.

That said, you’ll want to keep strong reserves (3–6 months minimum) since one repair or vacancy can flip your cash flow negative at that leverage.

2. Creative or alternate strategies you might consider

House hacking: Live in one unit, rent out the others (duplex/triplex/quad). This lets you use owner-occupied financing with much lower down payments and rates.

Partnerships or joint ventures: Partner with someone who has more capital while you handle the analysis, operations, or financing legwork.

BRRRR (Buy, Rehab, Rent, Refinance, Repeat): Start smaller with a value-add deal where you can build equity quickly, then refinance to pull out capital.

Out-of-state turnkey rentals: Buy in a cash-flow market where your money stretches further - like Memphis, where entry prices are still affordable ($100–150K range) and rents stay strong.

3. Waiting isn’t always the best play

It’s tempting to “save up until it feels safe,” but real estate rewards time in the market more than timing the market. If you can find a deal that at least breaks even, gives you experience, and builds equity, that first one can be your launch pad for future opportunities.

If you ever want to explore the Memphis, TN market - where I work as a real estate agent helping out-of-state investors grow their rental portfolios - I’d be happy to show you what realistic returns look like here and connect you with vetted property management through FoundationPM.com.

You’ve got the right mindset already - the key now is finding a market that fits your capital and goals without overextending

Hey @Alec Strahl! That’s actually a really smart and common question, and you’re thinking about this the right way.

You’re not crazy at all for considering renting where you live and investing your savings somewhere that makes your money work harder. A lot of investors in high-cost markets like Tampa, St. Pete, and South Florida go that route once they realize their $500K doesn’t buy nearly the same return it could in other parts of the country.

Here’s a breakdown of your options and some thoughts:

Option 1: Buy a primary home in Tampa or St. Pete

Pros:

You lock in your own housing cost and start building equity.

If your job situation changes, you could convert it to a rental later.

Florida still has solid long-term appreciation potential.

Cons:

With your budget, you’ll likely get limited cash flow - and might even go negative after taxes, insurance, and maintenance.

If you move, managing or selling could get tricky.

This route makes sense if you’re certain you want to stay in the area long-term or you find a home that could double as a strong rental later.

Option 2: Keep renting and invest out of state

This is the path many people take when local markets don’t make financial sense.

With $100K, you could easily get into a few cash-flowing rentals in affordable markets - like Memphis, TN, where I’m based.

Here, homes in solid working-class neighborhoods still trade in the $100K–$150K range, and rents often fall between $1,100–$1,400/month, leaving healthy margins even after property management and expenses.

If your goal is to start building a rental portfolio, investing out of state now might actually accelerate your path to financial freedom more than locking all your money into an expensive primary home.

 A blended approach to consider:

Buy something smaller or more affordable as a house hack (e.g., a duplex or home with a rentable portion), or split your funds - keeping a portion in reserves while putting some into a lower-cost, cash-flow market.

That way, you’re still living flexibly while getting your foot in the door with real estate income.

You’ve got a good head on your shoulders thinking this through carefully before just buying for the sake of it.

If you ever decide to explore the Memphis market - where out-of-state investors often start because of the low entry prices and solid rents - I’d be glad to show you some examples and connect you with reliable property management through FoundationPM.com, the team I work with here.

We specialize in helping investors exactly like you make that first out-of-state purchase confidently.

Would you like me to share what typical numbers look like here for a $100K–$150K rental?

Hey @Alexsis Venable! great questions and a smart way to think through your next move. Using your home equity to jumpstart investing is a path many choose, but it does require careful planning and execution.

Here’s what I see based on your markets and goals:

1. Which markets are strong for Section 8 in 2025?

Memphis, TN is still solid for Section 8. There’s existing infrastructure, demand from working-class renters, and many investors use Section 8 as part of their stable cash flow strategy.

Cleveland, OH still has neighborhoods where Section 8 is viable, though it's more variable - you’ll want to carefully vet which zip codes.

Birmingham, AL and Huntsville, AL also have potential for Section 8, especially in neighborhoods close to jobs and transit, but they tend to require stricter due diligence on tenant risk and neighborhood stability.

In short: Memphis probably gives you the most “safe bet” among those four for combining affordability + existing Section 8 systems + investor awareness.

2. Pitfalls of buying out of state

Local knowledge / neighborhood variance - a property two blocks away might be great or terrible. You’ll need a trustworthy local agent and boots-on-the-ground help.

Property management reliability - you’ll depend heavily on the PM to screen tenants, handle repairs, and enforce lease terms. If they’re not on point, issues multiply fast.

Unexpected costs and capital expenditures (capex) - roofs, HVAC, plumbing - things you might not see in photos. Always pad your rehab/reserve budget.

Tenant risk / turnover / vacancy - Section 8 helps with consistent partial rent payments, but there can be delays or administrative hassle.

Inspection / compliance - Section 8 properties often have more inspections and requirements; failing those can lead to rent being withheld or fines.

Cash flow margin pressure - because you’re leveraging your home equity, higher mortgage or financing costs might eat into your margin early.

3. Should you sell your home or rent it out and invest elsewhere?

This depends a lot on your risk tolerance, attachment to your current home, and how confident you are in managing a rental. Some thoughts:

Pros of selling & investing elsewhere

 • You free up large working capital without debt service on your primary.

 • You can start with a portfolio approach out-of-state rather than one risky piece here.

 • You avoid the stress of managing a long-distance rental of your former home (which might not cash flow well in South Jersey).

Pros of renting your home instead

 • You keep your “home base” and avoid relocating if things get rough.

 • You maintain potential home appreciation in your local market (if it grows).

 • You may be able to use that rental as backup or sell later if your investing path doesn’t work out.

If your goal is generating more cash flow and scaling quickly, selling might give you more leverage to get going full speed in cheaper, more cash-flow-friendly markets. Just make sure you’ve vetted your first deals thoroughly - losing equity on a bad rental can hurt more than leaving some equity idle.

If you’re seriously considering Memphis, I’d be happy to walk you through:

Recent Section 8 deal examples

Neighborhoods that balance safety + rent potential

How other out-of-state investors set up their property management and rehab teams here

Let me know! I’d love to help you run numbers or dive deeper into a market comparison.

Hey @Justin Bul! Sounds like you’re approaching this the right way! You’ve already done more than most new investors by running the numbers, getting pre-approved, and actually making offers! That’s huge.

Given your goals and budget range, I’d definitely recommend taking a look at Memphis, TN. It’s one of the strongest cash-flow markets in the U.S. and is especially popular with out-of-state investors from California. Prices in the $200K–$250K range can easily get you a well-renovated single-family or even a small duplex in solid, rent-ready neighborhoods.

The city also works well for midterm rentals! Travel nurses, corporate relocations, and contractors are common tenants, especially with the number of hospitals and logistics hubs around here. The returns tend to outperform long-term rentals without the regulatory headaches of short-term stays.

I’m actually a real estate agent based here in Memphis, and my team specializes in helping out-of-state investors find, analyze, and manage rental properties through our local partners. If you ever want to run numbers on specific deals or get a better feel for neighborhoods that fit your midterm rental strategy, I’d be happy to help point you in the right direction.

You’re definitely on the right path! Just keep making offers, refining your criteria, and building your team. The first deal is always the hardest, but once that’s done, the momentum really starts to build.

Hey @Christopher Rubio, welcome to the community! Sounds like you’ve done your homework and are thinking about this the right way!

You've already nailed the main trade-off: SFRs are simpler and attract more stable, long-term tenants, but small multis tend to deliver stronger cash flow and help you scale faster once you've built your team. For a first out-of-state investment, many new investors start with an SFR just to get comfortable managing from a distance, then transition into duplexes or triplexes once they have a solid property manager and maintenance contacts lined up.

If you're targeting that $80K–$125K range, you're right in the sweet spot for markets like Memphis, TN where you can still find solid cash-flowing properties and landlord-friendly laws. I'm actually a real estate agent here in Memphis and help a lot of out-of-state investors (especially from California) get started with BRRRR or buy-and-hold strategies. The rent-to-price ratios here are some of the best in the country, and it's a great place to build your first team with experienced property managers, contractors, and lenders who understand investor needs.

If you'd ever like to learn more about how investors are structuring their first few deals here , or just want to talk through the SFR vs. small multi question , I'd be happy to help however I can.

You’re in a great position to take that first step. The best way to gain clarity is by jumping into that first deal, even a small one, and learning through experience.

That’s awesome @Colin Frank! Seriously impressive stuff, especially at 20! You’re doing exactly what most investors wish they started earlier! House hacking, managing tenants, and already cash flowing. That’s a huge win.

Since you’re waiting until next summer to pick up your next deal, this is the perfect time to lay the groundwork for scale:

• Build relationships now - start networking with investor-friendly agents, property managers, and lenders in markets you’re interested in.

• Analyze deals daily - even if you’re not buying yet, practice running numbers so your next deal jumps off the page when you see it.

• Learn creative financing - partnerships, private lending, or even seller financing could help you buy sooner without needing a huge down payment.

• Document your journey - your experience at 20 could inspire others and help you connect with like-minded investors.

If you ever start looking out of state, especially for cash-flowing rentals, the Memphis, TN market could be worth exploring. I’m a local real estate agent here and work with out-of-state investors who are building portfolios remotely. If you ever want insight into how others your age are scaling smart, I’d be glad to share what’s working here and help you plan ahead.

You’re already doing the hardest part! Taking action early! Keep stacking knowledge and cash, and you’ll be ready to move fast when the next opportunity comes around.

That’s awesome, @Rick Ellsberry! Congrats on getting close to retirement and planning ahead for the next chapter. With your background as both a former agent and loan officer, you’ve already got a solid foundation that most new investors don’t start with.

Since California's tough for cash flow, long-distance investing can definitely make sense. The BRRRR strategy is a great way to recycle your capital, but it does come with moving parts, especially from a distance. so building a strong local team (agent, PM, contractor, lender) is key.

A lot of out-of-state investors I work with start in markets like Memphis, TN, because the entry price is reasonable ($80K–$125K range), rents are strong relative to purchase price, and it's a landlord-friendly environment. That makes it a solid fit for BRRRR or even straight buy-and-hold.

I’m a real estate agent based here in Memphis and help out-of-state investors build rental portfolios. If you ever consider Memphis as one of your markets, I’d be glad to share what’s working here and help answer any questions so you can hit the ground running.

Since you’ve got a 3–5 year runway before retirement, are you thinking of starting with 1–2 properties now to build experience, or waiting until after you’re fully retired to dive in?

Welcome, @Christopher Rubio! Love how clear you already are on your goals and buy box, that’s a huge advantage getting started.

You’ve already nailed the trade-offs:

• SFR – simpler to finance, easier to manage remotely, and often attract longer-term tenants. Downside is that if it's vacant, you're at 0% occupancy.

• Small Multi (2–4 units) – stronger cash flow potential and spreads vacancy risk across units. But, as you said, financing can be trickier, and management (especially out-of-state) requires a strong PM and reliable contractors.

A lot of new investors I work with in Memphis start with SFRs, not because it’s the “better” strategy, but because it’s simpler for that first step. It gets you comfortable running numbers, building a team, and trusting an out-of-state process. Then they scale into duplexes and fourplexes once they’ve built confidence and systems.

Looking back, many experienced investors say they wish they’d gone into small multis sooner because of the economies of scale, but at the same time, those who started with SFRs often avoided the stress that can overwhelm new investors.

I’m a real estate agent here in Memphis, TN, and I help out-of-state investors build rental portfolios. Properties in the $80K–$125K range are very common here, both SFRs and small multis, so it really comes down to what makes you feel most confident about pulling the trigger.

If Memphis ever makes your shortlist, I’d be glad to share what’s working here and walk through examples of both options.

Welcome, @Graham Kim! Glad to see you jumping in and asking the right questions early on.

For your first deal, it really comes down to how hands-on you want to be and what resources you have (time, cash reserves, and a reliable contractor/handyman).

• Move-in ready → Safest option for a first-timer. You’ll likely pay a bit more upfront, but you get rental income rolling quickly without the stress of managing a rehab.

• Cosmetic rehab → A great middle ground. Things like paint, flooring, fixtures—stuff you can often manage or outsource without huge risk. This can help you force some equity and improve cash flow while still being beginner-friendly.

• Significant rehab → Usually not ideal for your very first deal unless you already have construction experience, a strong team, or a mentor guiding you. It can be rewarding, but it also carries the biggest risk of surprises and delays.

Since you mentioned <$200K, you’ll probably come across all three types depending on the market. My suggestion: start with either move-in ready or light cosmetic rehab for your first. Get comfortable with running the numbers, working with a property manager, and building your systems. Once you have that under your belt, you’ll feel much more confident tackling heavier value-add projects.

I’m a real estate agent here in Memphis, TN, and I work with a lot of out-of-state investors buying in that same price range! Many of them start with move-in ready or light rehab deals to build confidence before scaling up. If Memphis ever crosses your radar, I’d be glad to answer questions or share what’s been working here.