Correct me if I'm wrong anyone, but if you sell your investment property for a loss you'll be able to tag that loss on your personal taxes through your schedule C or E.If you choose to keep it then that 2.5% interest rate is very attractive and you'll be able to achieve good cash flows and you could see how operating a rental is and if it's a huge headache you could always sell it and 1031 into another real estate investment whether it's a flip or SFH rental.I hope these ideas can help.

Lexington has some good fundamentals, but since you’re open to out-of-state investing, I’d also recommend you take a serious look at the Memphis, TN market.Here’s why Memphis is popular with remote investors:Affordable buy-in: Plenty of solid rental properties in the $100K–$150K range.Strong rental demand: Large renter population with consistent long-term demand.Landlord-friendly laws: Easier to operate compared to many other states.Diverse economy: Logistics, healthcare, and manufacturing keep jobs stable.The key is having a reliable property management team to handle the day-to-day, which is what makes Memphis attractive to out-of-state investors who want to scale.If Memphis ever makes it onto your shortlist, I’d be glad to share more about neighborhoods that are investor-friendly and how out-of-state investors successfully build portfolios here.

The main shift would be on turnover and stability of income — Section 8 is attractive because of guaranteed rent. 

Move-in-ready homes attract less risk-averse investors who want faster turnover.Honestly, it’s all about what you’re comfortable managing; some like the higher-risk rehab deals, others focus on ready-to-go properties for cash flow.

As Nashville’s prices climb, those surrounding areas are attracting both investors and renters.

And, having ready access to capital allowed us to scale more quickly.  2) Because the compensation is so balanced, it makes passive investing much more attractive.  

If you follow that, your property will appreciate more and quicker, you will attract higher quality tenants, and make your life easier, you will enjoy living there, and you will command greater rent.

COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors.

COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors.

Columbus, Ohio, is quietly emerging as one of the strongest examples of this trend.Why Columbus Stands Out for Investors:Affordability with Strong Returns – Home prices remain accessible compared to national averages, while median rents have shown consistent growth, creating favorable rent-to-price ratios.Population and Job Growth – With Ohio State University, a robust healthcare system, and major employers expanding—most notably Intel’s $20B investment—Columbus is attracting new residents at one of the fastest rates in the Midwest.Revitalization and Development – Significant city and private investments are reshaping downtown and surrounding neighborhoods, fueling appreciation and long-term demand.Investor-Friendly Climate – Ohio remains comparatively landlord-friendly, allowing owners to better protect cash flow and streamline operations.Strategic Location – Columbus sits within a day’s drive of 50% of the U.S. population, strengthening its role as a logistics and business hub.The Takeaway: Columbus is no longer just a “stable” Midwest market—it is evolving into a growth-oriented environment where investors can combine cash flow with appreciation potential.