New to out of state long term investing

[Crystal Lo]

Hi there BiggerPockets community,

I currently reside in Los Angeles, CA. I'm interested in purchasing my 1st house out of state as a long term investment and would rent it out. My budget is $400,000 and can put 20% down. I'd also like to partner with a property manager since it'd be out of state. However, I'm stuck on what city to invest in. I'm considering Dallas, TX or Denver, CO, but I'm open to anywhere and want to do further evaluation. I'm not sure how to start my analysis process so I would love any advice and resources. Thanks in advance!

[Ali Nichols]

Hey @Crystal Lo congrats on setting yourself up to invest. It does come down to what are your goals. Immediate returns are more possible in places like Ohio, Kansas City, etc. And there are even a few markets like Columbus that might have a good mix of immediate returns + upside from an expected appreciation perspective. 

We still invest in Denver and Dallas because fundamentally there are still macro tailwinds for these markets. Getting cash flow will be very difficult but if your goals are long term in nature, the right deal still makes sense in those markets imo. 

Our team sources deals across these markets if you would ever like to connect to learn more.