Hi everyone!

I’m an investor based in California, looking to expand into out-of-state markets. My focus is on long-term, buy-and-hold rental properties in Class B and above neighborhoods. I’m primarily targeting starter single-family homes and townhomes, and I’m prepared to put down 30–40%.

My goal is steady cash flow with good tenant quality and appreciation potential over time. I’ve already looked into a few markets in Alabama and Tennessee, but I’m finding it challenging to locate cash-flowing properties in true Class B neighborhoods—once I factor in property management fees and maintenance costs, nothing seems to cash flow, even with a sizable down payment. I’m not trying to maximize cash flow, since I’m looking for a mix of cash flow and appreciation, I’d be happy with even $100–200/month in positive cash flow, as long as the property is in a good neighborhood with solid appreciation potential.

If anyone has suggestions on markets or submarkets where the numbers still work for Class B or better properties, or any tips on how you’re making deals pencil in similar areas, I’d love to hear your insights. Also open to agent, PM, or wholesaler recommendations for markets where this strategy still works.

Thanks in advance!