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Updated 15 minutes ago on . Most recent reply
New Investor (From California!) Looking for Advice on Out-of-State Rental Investing
Hi BiggerPockets community! 👋
I’ve been lurking on the forums for a bit and finally decided it’s time to jump in and introduce myself.
I’m a brand-new investor based in Los Angeles, and I’ve set a big goal: buy 10 rental properties in the next 6 years, starting with my first one before the end of this year. I’m 34, work full-time in a job I love (so moving is not an option), and after crunching the numbers… I’ve realized investing locally in California just doesn’t make sense for my strategy or budget.
So, I’m preparing to become an out-of-state investor — and I’ll be honest, that’s the part that intimidates me most. The idea of buying a property in a totally unfamiliar market, from afar, and needing to build a trustworthy team in that area… it’s both exciting and overwhelming.
Here’s what I’m already doing to prepare:
- Listening to BiggerPockets and BP Rookie podcasts religiously (they’re my road trip buddies now).
- Reading The Book on Rental Property Investing by Brandon Turner.
- Browsing these forums about 20 minutes a day.
- Considering taking the BiggerPockets Rookie course (would love to hear honest reviews if you’ve taken it!).
Obviously, there’s so much more self-education I need to do beyond just these things — but that’s where I’ve started. I’m currently dedicating about an hour a day to learning, and I welcome any suggestions for what else I should be diving into at this stage.
Right now, I haven’t selected a market yet — I want to make a well-informed decision, not just follow trends. I’ve got ~$150K ready to put toward my first property and am more than willing to travel for due diligence, but I need help building a smart, strategic roadmap.
If you’re an experienced out-of-state investor, I’d love to hear:
- How you chose your market(s)
- How you built your team remotely (agents, PMs, contractors, etc.)
- Any mistakes you made early on that I should watch out for
- Encouragement or success stories that helped you feel confident despite the distance
I know the road ahead won’t be easy, but I’m so determined to do this right. Appreciate any advice, insight, or even just a “you got this” from others who’ve been here before.
Thank you in advance, I can't tell you how much I appreciate any guidance! 🙏
—Shyla
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#4 All Forums Contributor
- Rental Property Investor
- Detroit, MI
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#4 All Forums Contributor
- Rental Property Investor
- Detroit, MI
Hey and welcome! I live in LA myself for four years :-) You’re in the exact right place, and I love your clarity and commitment - 10 rentals in 6 years is 100% doable, especially with your savings and mindset.
As someone who also started out-of-state (and still invests that way), I totally get the mix of excitement and nerves. It can feel overwhelming at first, but with the right team, systems, and market, it becomes way more manageable than you’d think.
How Most Investors Pick Market(s)
Like you, many investors know that California won't cash flow well. So, they will focus on:
Landlord-friendly states
Strong rent-to-price ratios (ideally 0.8%–1%)
Decent population/job growth, not just cheap housing
In markets like:
Birmingham, AL – strong cash flow, new builds under $300K, great PMs
Ocala, FL – solid appreciation + good rents on new homes
Memphis, TN – great for cash flow with a large rental population
Akron/Canton, OH – very affordable and high returns
Tulsa, OK – low taxes, cash flow, and growing interest
Albuquerque, NM – unique but underrated growth market
These areas allow investors to buy newer homes or fully renovated properties that they don't have to babysit.
I'd suggest the following:
Build a Remote Team
Start with an agent or a turnkey provider
Find a PM, handyman, inspector, and lender referral network.
You can also ask for recorded video walkthroughs of homes + neighborhoods to help get comfortable with remote purchases.
Leverage turnkey providers for your first deal - they often have everything in place (PM, rehabbed/new home, tenant, etc.) so you learn the ropes without managing a full renovation from afar.
Lessons & Mistakes to Avoid
Don’t chase the cheapest properties - focus on neighborhoods with tenant demand and low turnover.
Vet your property manager like you’re hiring a CEO. Interview at least 2–3.
Plan for CapEx and vacancy even with new/turnkey homes - budget conservatively.
Don’t rush into a market just because it’s trending - look for stable, boring growth.
You’re already doing more than 90% of aspiring investors by educating yourself first. Seriously - the podcasts, books, forums, and intentional approach you’ve taken will pay off.
You’ve got the capital, the mindset, and the drive. Now it’s just about taking the first step. Once you close on that first out-of-state deal, you’ll realize it’s very repeatable. And from there, scaling to 10 properties becomes a clear, achievable path.
Feel free to DM if you want example deals or help comparing markets - happy to share what’s worked for me personally.
Best of luck,
Melissa