All Forum Posts by: Kerlous Tadres

Hey @Matt Miller, I would recommend looking at properties that have flexible appeal, not just Section 8, but that can also attract regular renters. Focus on solid cash flow, durable materials, and value-add potential. That way, even if subsidies drop, your units are still attractive, and you won’t be stuck with long vacancy periods.

Hey Sean! From my experience, starting in-state makes sense; you know the area and can easily manage your property. But if cash flow is your focus, out-of-state investing can work too, as long as you have a good plan for property management. Connecting with other investors helps a lot. For research, I’d check investor forums, county assessor sites, and rental listings to compare prices, rent, and vacancy. I’d recommend starting with a manageable deal, get your first win, and then scale from there.

Hey Eli, welcome! I would recommend focusing on neighborhoods with strong rental demand and stable populations, and avoiding high-crime or unstable areas. Work with a local lender who knows the market; they can help structure financing and guide you on realistic numbers. Start building a team with a reliable local property manager who can also connect you with vetted contractors and agents. Stick to 2–4 units for your first out-of-state deal; it’s easier to manage and learn the market.

Hey Eric, I would recommend focusing on areas like East Dayton, Westwood, and parts of Oakwood for more stable B-class neighborhoods. If you’re willing to take on a bit more rehab, some areas in South Dayton and near the University of Dayton can give you higher returns in C-class spots. I’d also recommend connecting with some local investors who own multiple rental properties in Dayton. Talking to people active in the market can give you real insight into neighborhoods, property management, and potential deals that aren’t always listed.

Quote from @Nate Pabst:

My wife and I are looking for potential lenders in the Northwest Ohio area! We are starting off our real estate journey and looking to make our first deal within the coming months. We are interested in a home in Bowling Green listed at $109,000 and we need a pre approval or cash to tour the home and begin the buying process. Please respond if you have any advice or if you're interested in doing business!

 I have a great lender that I can send you info for someone who can do this loan 

Quote from @Matthew Heckman:

I'm looking to break into the multifamily scene, specifically in the <$250,000 price range. I'm searching for something that would require light remodeling which I can BRRRR, no gut rehabs and preferably nothing turnkey unless cash flow is still obtainable. For anyone who actively invests in or is looking to invest in multifamily homes, what markets have you had success in, or do you think would be a solid starting point in 2025?

I would look into the midwest; there are some solid opportunities out there for you and some great cash-flow deals. I know multiple investors out of state who have been able to find some cash-flowing opportunities in those areas

Quote from @Ravi Bhagavan:

I am an out of state investor looking to invest in turnkey properties in Cleveland and/or Columbus. I have looked at other places like Birmingham, Little Rock and Memphis, but for now settled on these two (mostly!). Between these two, I am leaning more towards Cleveland. I have a leasing agent I like and I will use a property manager (yet to interview/hire). I am going to do a DSCR to keep my person DTI low preferably, and I don't see much difference in the DSCR rates vs conventional rates when I have checked with a few lenders.

Overall my goal is to build up a portfolio that can generate 60-75K in cash flow in 4-5 years, with a 3% annual property appreciation. 

Here is where my thinking starts to get muddled-

Strategy A- But 4-unit multi families in Cleveland. As is well known on this forum, there are parts of Cleveland on the East Side that provide a high cash flow with Section 8. But the high CF numbers on paper will not likely not be a reality as there will be more fixes/rehabs/tenant turnover with these properties. I am open to this, but the more I think about it, I don't know if getting into Sec 8 on my first property is a good thing.

Strategy B- Buy 4-unit multi families but buy them in westside neighborhoods such as Edgewater and maybe ones on the edge like Tremont (which seems to have the best value+ price combination). These are though in general hard to cash flow overall.

Strategy C- Buy a 12-16 unit apartment complex around $1MM. More of these are available in Columbus (compared to Cleveland) in areas like Franklinton. 

Across all of these strategies, I am not risking more than 30% of my capital. 

I can go small multi families to bigger ones, or I can go for the bigger ones. My intuition and data so far indicates that scale matters- the more the number of units, the more you get economies of scale. The part where I get scared is that I don't really have a team, and the feeble attempts I have made at building one have not really resulted in anything. For example, while I understand the concept of cost seg, I have no experience with it. When I say the team, I specifically am referring to a lender and a competent property manager who can manage a large property and a CPA because all of this is for nothing if I cannot figure out the right tax strategy.

I'd love to get some feedback from some of the other folks on this thread, please share your thinking.

I would recommend looking into using strategy B in Columbus! Going big in an area that you don't know very well can be a little risky. I would start one deal(anywhere from 2-4 units) at a time and go from there. As long as you build a solid team with a great CORE 4 with a great realtor, contractor, property manager, and attorney, then you'll go far. 

Hey Chris, welcome! I've worked with a lot of out-of-state investors, and the biggest thing I see is that success comes down to your local team and knowing the neighborhoods. Markets like Memphis and Cleveland are solid for BRRRR deals affordable, strong rental demand, and low turnover. Make sure you have a reliable property manager, a good agent on the ground, and a couple of contractors you can trust. The mistakes I see most often are underestimating rehab costs, overpaying, or relying on the wrong neighborhoods.

Hey Barbara, from my experience, out-of-state investing can absolutely work, but it comes with some extra moving parts. If you’re looking for minimal work and strong cash flow, I’d focus on markets where rental demand is high, prices aren’t crazy, and property management is affordable. The Midwest is often considered “landlord-friendly” and tends to have solid cash-on-cash returns. I would recommend doing your homework on local laws, tenant turnover rates, and property management options before pulling the trigger. Even if you find a turnkey property, having a reliable local PM is key, especially if you can’t be there regularly. From my experience, it’s better to pay a little extra for a good property manager than to regret being hands-off with a property that needs attention.

Hey @Manny Santacruz, my advice is to start small, get hands-on with your first property, and use that experience to refine your strategy for the next one. And don’t underestimate networking; chatting with other investors will give you practical lessons no book can teach. Screening tenants and setting up a property management routine that keeps your first rental running smoothly.