New Rental Property Purchase - Out of State

[Shayan Sameer]

Hello,real estate investors,

I have a question for those with experience pulling home equity to fund new investments. I'm considering tapping into the equity from either my primary residence or rental property to purchase another rental home that generates solid monthly cash flow.

I'm open to investing out of state and have heard that areas like Ohio, Tennessee, Georgia, and North Carolina offer potential opportunities. However, I'm unsure of the specific areas within these states to target. For example, if I were to invest in Columbus, Ohio, could anyone share their insights on which neighborhoods or parts of the city offer good returns?

My goal is to ensure that I hit the 1% rental return per month. My budget for the property is up to $200K.  Is that enough?  I reside in FL, so I would like to purchase in neighboring states if possible, but I heard Ohio is a great market.   

I'm open to all suggestions and ideas! Looking forward to your recommendations.