I am based in California but looking to invest in out-of-state rental properties to take advantage of better cash flow and more favorable price-to-rent ratios.Right now, I am particularly interested in :Markets with strong demandProperties under 80k-125K (single family or small multi-family)Areas with steady job growth and landlord-friendly regulationsMy background • I am a military veteran.

I have offered to help before, to which I got reply that best thing you can do is let us do our job.

Despite this, strong demand drivers and a significant influx of job additions have helped maintain a relatively stable occupancy rate of 93.2% by Q4 2024. 

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

I’m mainly targeting $350K–$400K multis, not low-end rentals, so I’m wondering how much these concerns play out at the mid-tier level (clean, older units in high-demand neighborhoods).Someone also suggested Lehigh Valley as an alternative with more landlord-friendly laws, faster evictions, and tighter housing supply — so I’m also open to exploring that if it offers a better balance of cash flow and stability for a first-timer.Would love to hear from anyone who has:- Bought a duplex or triplex in Philly and held it as a rental (or house hacked)- Had wins or regrets in specific neighborhoods (especially in 19121, 19123, 19122, 19125, etc.)- Dealt with tenant challenges, rent turnover, licensing, or repairs at the $350K–$450K range- Worked with a solid PM, lender, or agent who understands long-distance or first-time investorsAlso curious about rental demand for older, well-kept units (i.e., not luxury flips, but not falling apart either).

Since your focus is on appreciation and taking it slow, I’d suggest spending some time looking at neighborhoods with steady job growth, planned developments, and strong local demand.

Areas with strong job growth, good schools, and a vibrant community often attract long-term tenants, ensuring consistent rental income.

As a property manager and Realtor, we've had investor clients who've unfortunately lost their jobs or have gone through times of hardship and the last thing they would need is to worry about how they're going to pay for a negative cash flowing property.

It’s often easier to manage remotely if you set up a reliable local property manager and have systems for keyless entry, cleaning, and maintenance.Focus on areas with strong job growth, universities, or hospitals, as they consistently feed mid-term tenants.

Living in the property while I was remodeling, and working my regular job was challenging for my wife and family.