All Forum Posts by: Jackie Mcmorrow

Quote from @Jackie Mcmorrow:

Hi BP! My name is Jackie and I’m looking for some guidance as I begin my real estate journey. I’ve read a few books/ listened to some podcasts on real estate investing and am ready to start analyzing deals but am stuck on which market to narrow in on. I can feel myself getting into analysis paralysis (in terms of market selection) and the last thing I want is to quit before I really even try.

Appreciate if anyone has thoughts on markets that generally fit the criteria below and I’ll take it from there! I’ve also included a short list of cities that seemingly fit what I’m looking for but am open to thoughts here as well. Worth mentioning, I live in NY and am leaning towards investing out of state, for lower property taxes and more landlord friendly laws.

What I’m looking for

- Buy and hold property

- Long term tenants (ideally vacant at purchase)

- Single family home

- Class B to A (likely B for more cash flow opportunity) neighborhood

- Opportunity to add value so am more than open to rehab

- Cash flow as primary focus

- An area with comparatively low risk of natural disaster

- Of course somewhere with growing population and jobs and less than average crime. Added bonus if a large corporation/ industry is investing in the area and or a city with confirmed infrastructure improvement plans

Cities I’ve found that seem to fit the mentioned criteria but appreciate thoughts/ guidance/ direction:

- Cincinnati, oh

- Columbus,oh (but seems like too hot a market?)

- Dallas/ Fort Worth, tx

- Charlotte, nc

- Toledo, oh

- San Antonio, tx

- Minneapolis, mn

Hi Jackie,

My focus is on out-of-state investing. I'm in CA and currently hold assets in AL, AR, CA, FL, GA, IL, IN, MA, MO, MS, OH, OK, PA, TN, TX, WA. Happy to share my experience. Message me if you would like to chat. Same goes for anyone else interested in building a robust out-of-state portfolio. I have 32 single-family long-term rentals, a stake in over 2200 units of multifamily, and currently have 7 flips on the go.

Best,
Austin.

@Jackie Mcmorrow

just a couple of reactions:

-i'd pick a market within a couple hours of you.  the closer the better.  i'd even consider... investing in New York.  a lot of people must be making it work, as there are millions of rentals there.  how are they doing it?  go talk to successful PMs and investors and copy whatever they're doing.  if you're in NYC, OK, i get it, you might have to go a couple hours out. but you have lower cost markets in PA and NJ and NY within a couple hours.  you can look there.  it might take some effort, some driving, some networking.

-there basically is no cash flow right now, anywhere.  not in NYC, not in Toledo. your first several years, or even longer, will be INvesting, in which you will be putting money in. almost all properties have kinks that need to be worked out once tenants move in - things that need to be fixed, or a big capex item that comes due when it wasn't supposed to. a roof, a furnace, or even a dishwasher.  prices are high, rates are high, closing costs are high. if you buy a property in Toledo, you put a huge chunk of money down, you pay 10-15K in closing costs, and then you 'cash flow' $82 a month, when do you truly start netting income? 

-finally, when investors chase cash flow, often this happens:

https://www.biggerpockets.com/forums/432/topics/1231840-sell...

https://www.biggerpockets.com/forums/48/topics/1242392-rough...

i am not trying to negative, just trying to set expectations. if you're in it for the long haul, and not going to be phased by a roof or a sewer line or a rough turn or a bunch of appliances going at once, then great.  but, so many new investors buy a property and are immediately disappointed when their 'cash flow' expectations are not met.

hope this helps

happy to dialogue further

Hello @Jackie Mcmorrow,

You did a great job on the criteria you specified. The city you choose to invest in IS your most important investment decision. The city defines whether you can maintain lifelong financial independence. Below are some considerations (not in any order).

Landlord-Friendly Laws

Never invest in any cities or states with rent control or restrictive rental regulations. These can make selecting performing tenants, evictions, and rent increases nearly impossible, jeopardizing your ability to maintain profitability.

Lifelong Income

Initial cash flow only predicts initial return under ideal conditions. Financial independence requires rent growth and appreciation that outpaces inflation. Growing markets with higher property prices may offer lower initial cash flow, but their rent growth typically outpaces inflation, enabling lifelong financial independence.

Jobs

An investment property is no better than the jobs your tenants have. For your income to last a lifetime, your tenants must remain employed at similar wages. Since companies have limited lifespans, only invest in cities that attract new businesses that will create the replacement jobs. Look for cities with:

• Low crime rates
• Metro populations over 1 million (for infrastructure and skilled workers)
• Low operating costs.
• Business-friendly regulations

Tenant-First Approach

No property pays rent—tenants do. To have a reliable income, you must have reliable people in your property. A reliable person stays for many years, pays rent on schedule, and takes good care of the property. These people are the exception, not the norm. Work with property managers to identify properties that attract reliable tenants. Then, buy properties similar to what they rent today. Selecting a property first and hoping for good tenants is a risky approach.

Renovation Considerations

Study comparable properties that rent quickly at full market value and make only the necessary changes. Your personal preferences don’t matter—focus solely on upgrades that increase rent or reduce vacancy time.

Summary

By focusing on these criteria, you’ll build a portfolio that supports lifelong financial independence.

@Jackie Mcmorrow 

- great list and even better mindset. You're not wasting time at all. This stage of "analysis paralysis" is part of the journey for most serious investors, especially those investing out-of-state. You’re asking the right questions.

A few points from someone who's managed a significant number of long-term single-family rentals:

1. There’s no perfect market. But there are systems and teams that can make almost any solid market work. I’ve seen investors succeed in areas that didn’t check every box — but they had the right local partners, contractors, and leasing strategy.

2. DFW is worth a deep look. Cities like Fort Worth, Arlington, and parts of Denton County offer Class B neighborhoods with growing demand, rehab opportunities, and stable job markets (healthcare, logistics, aerospace, and education — think TCU, Lockheed, and Alliance Airport). Property taxes are higher here than the Midwest, but Texas has no state income tax and strong landlord protections under the Texas Property Code.

3. Vacant + value-add + cash flow = success formula — but make sure your numbers account for holding time during rehab, realistic rent rates (not Zillow guesses), insurance (especially if you’re using older roofs or plumbing), and professional management if you’re not local.

4. Lean on professionals. Out-of-state investing is a team sport. I always recommend investors get connected with local property managers, mortgage brokers who understand rental investing (like @Andrew Postell), and insurance agents like Cameron Moore at ProCo who structure policies that protect your ROI.

Keep going. Don’t let fear of picking the wrong market hold you back from making the right moves. Most of us struggled early on, but with time and discipline, this business becomes incredibly rewarding.

And if you haven’t yet, listen to the podcast How Real Estate Changed My Life — it’s full of stories from regular folks who made this journey work. You’re on the right track.