OOS Investing in Which Markets?

[Garet Gavito]

Hello there! I'm based in San Jose, CA (and may be moving to NYC in the next ~1.5 yrs) and have been trying to decide which market to invest in out of state. I make a decent six-figure income here but couldn't fathom ever affording a remotely decent place here, which has driven me to look at markets out of state where I could actually come up with $40k for a down payment. In particular, good price-to-rent ratios, low median home values, and high rental demand have led me to consider the areas around Milwaukee, WI and Detroit, MI -- but honestly I've only just started researching. Open to other market suggestions too.

I did also consider Denver, CO since I'm originally from there and am familiar with the area, but the Denver metro area has gotten quite expensive itself... maybe a smaller town like Greeley?

I'm interested to know if anyone has any experience (benefits or risks) in OOS investing in a similar situation and what type of property you've invested in.

I'm also open to any advice you might have for someone who is buying for the first time and doing it out of state no less. Thanks!