Out of State Investing Locations

Indianapolis, Indiana
Out of State Investing
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Out of State Investing Locations

Cameron Fowler
Real Estate Agent · Indianapolis, IN · Member since 2021 · 65 posts · 24 votes

For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 

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Joseph Bui
Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
2y

I’ve been investing in Memphis and Detroit for the past few years and getting both cash flow and appreciation. I’ve scaled to 9 doors across those markets and so far so good. Happy to connect and knowledge if you are interested. 

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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    2y

    Definitely the most popular places are midwest and southeast. Indianapolis is high on the list as is Kansas City, where I live and invest. Others I've seen a lot are Oklahoma City, Toledo, Memphis, Raleigh, Nashville and Montgomery.

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  • Joseph Bui
    Lender · Nationwide · Member since 2023 · 362 posts · 237 votes
    2y

    I’ve been investing in Memphis and Detroit for the past few years and getting both cash flow and appreciation. I’ve scaled to 9 doors across those markets and so far so good. Happy to connect and knowledge if you are interested. 

    5Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    You'll find most folks flocking to the Midwest for out of state investing.

    The most popular areas are still in Ohio, specifically Cleveland, Toledo, Columbus, etc.

    Personally, I'm hugely bullish on Detroit. I own 12-doors there and have been investing in the city since 2019. 

    It's still relatively under-the-radar and obliterating the Ohio markets in terms of appreciation. It also has lower entry price points and cash flow.

    There's a lot to like about Detroit and I'm happy to send anyone some resources about the market there.

    That all said, out of state investing in general is tough. You need to really understand the risks and align yourself with smart people/teams that aren't just looking to take advantage of your ignorance.

    3Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Cameron Fowler:

    For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 


     Any major mid-west market has a push to invest because of all the gurus pushing cash flow

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  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    2y
    Quote from @Cameron Fowler:

    For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 


     I'm doing fix and flips in the Columbus, OH area with large ROIs. Great appreciation due to a strong economy and population growth.

    2Reply
  • Account Closed
    Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    2y

    Hi, yes Ohio is definitely a great place to invest in real estate. Please reach out for any questions. Best of luck!

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    almost any city in the Midwest

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Cameron Fowler:

    For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 


    Hi Cameron, the Columbus OH market is doing really great. The macroeconomics is booming - lots of job growth, population growth, and companies moving and developing out here like Intel, Meta, Amazon, Honda, etc. I'm an investor here myself and moved here from Portland OR. I started with house hacking and then purchased rentals that were clean BRRRRs. Now I have a successful rental portfolio. Happy to connect and answer any questions you may have.

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  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Hey Cameron, Columbus, Ohio is a great market to consider if you're leaning towards appreciation. I moved here from Florida after seeing the expansive growth in the Columbus market.

    There are multiple billion dollar companies dumping money into the city, such as Intel, Google, and Amazon. And a lot of start-up companies are migrating to this city as well, because of the efficient costs of living, the OSU campus that has thousands of students graduating and looking for jobs locally, and the availability of land.

    Everything that’s going on here in Columbus is attracting investors and other businesses from all over. A recent study showed that 80 people are moving to this city every single week, which will continue to increase housing demand.

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  • Brenden Evans
    Investor · Member since 2024 · 17 posts · 20 votes
    2y

    I’m also an out of state investor as well… I own some rentals in Cleveland and Milwaukee. Cashflow has been amazing for me. I’ve heard some great things about other cities as well, specifically Columbus. 

    3Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Cameron Fowler I’m in northern New England. While PP is likely higher than the Midwest we’re seeing loads of consistent appreciation and you can still find deals that cash flow $250-$300/unit after all expenses figured in.

    2Reply
  • Kermaury Musgrove
    Rental Property Investor · California, CA · Member since 2022 · 17 posts · 11 votes
    2y

    @Joseph Bui I definitely would like to pick your brain for that area.

    0Reply
  • Xavier Scott
    Member since 2024 · 1 post · 0 votes
    2y
    Quote from @Joseph Bui:

    I’ve been investing in Memphis and Detroit for the past few years and getting both cash flow and appreciation. I’ve scaled to 9 doors across those markets and so far so good. Happy to connect and knowledge if you are interested. 


    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    2y
    Quote from @Brenden Evans:

    I’m also an out of state investor as well… I own some rentals in Cleveland and Milwaukee. Cashflow has been amazing for me. I’ve heard some great things about other cities as well, specifically Columbus. 


    Amazing cash flow in Milwaukee? Can you quantify that a little bit? Frankly, that sounds a little too good to be true. Congrats for getting started at age 21 and I really wish you a lot of success, but I have bought my first rental property in Milwaukee 15 years ago and frankly, the market was much easier back then, I did not have the expense of a PM and cash flow was solid at about $200, but not amazing. A PM would have taken most of that.

    I have seen too many OOS investors fail buying cheap properties in rough areas not recognising that over time capex exceeds cash flow. The lack of upkeep starts to show and you can tell just by driving by what's going on. Soon the DNS starts issuing fines to the owner, but the collateral damage to the neighborhood is already done.

    Abundant cash flow is a myth, especially if you invest remote, pay a PM and you are buying 100-year-old buildings with financing. Milwaukee is probably still one of the better markets for cash flow, but you have to buy quality and if you are financed (not 100% cash) then slightly better than breaking even in the first few years is a pretty good result.

    1Reply
  • Andy Bahr
    Real Estate Agent · Charlotte, NC · Member since 2024 · 23 posts · 21 votes
    2y
    Quote from @Cameron Fowler:

    For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 


    Good Morning Cameron!
    I am in Charlotte and a lot of folks invest here for appreciation. I really don't think you can go wrong with the southeast. Droves of people are moving here. And investors are going to the secondary markets around Charlotte, or they are using creative strategies such as rent by the room, to receive some level of cash flow.

    All that to say, I grew up in Ohio, and it was always a good cash flow market. For your cash flow focused investors, I would assume Detroit, Cincinnati, Memphis, and Kansas City, as well as your market of Indianapolis.

    It is looking like we'll get 1 cut, maybe 2, from the Federal Reserve next month. It will be interesting to see how many people spring into action because of it, or if they simply hold on to the early spring of 2025.

    3Reply
  • Brenden Evans
    Investor · Member since 2024 · 17 posts · 20 votes
    2y

    One of my properties is in a C-area. Duplex rented for 1000 for the first unit, and 750 the 2nd unit. My bills on the house are around 900 a month including vacancy reserves.  Both markets have been cash flowing for me, Milwaukee a bit less but still gives me good cash flow. 

    1Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes
    2y

    You should consider looking into the Memphis market. The property prices are relatively low, which means you can acquire properties at a better price and potentially see higher returns. Additionally, the rental market here is pretty strong, with high demand and steady rental income. The city's diverse population and economic stability, thanks to major industries like logistics and healthcare, also play a big role.

    Memphis offers attractive rental yields and a vibrant cultural scene, making it a great place for both renters and investors. Overall, it seems like a solid choice for those looking to invest out of state. Feel free to reach out if you have questions about the Memphis market. 

    1Reply
  • Alyssa Wright
    Real Estate Agent · Pittsburgh, PA · Member since 2024 · 86 posts · 51 votes
    2y

    Definitely look into investing in PA! 

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Marcus Auerbach

    I too am in search of this amazing "cash flow" that I will receive on Day 2 of ownership.  All of my properties in Pittsburgh have, so far, weirdly, cost money to purchase.  Maybe I'm doing it wrong

    1Reply
  • William Haynes
    Real Estate Agent · Memphis · Member since 2021 · 16 posts · 10 votes
    2y

    We have a tremendous amount of out of state investor interest in the Memphis market. Blue collar jobs, strong tenant base and affordable homes have made Memphis an investor haven for a long time. 

    0Reply
  • Lindsay DavisBusiness Member
    Real Estate Broker · Birmingham, AL · Member since 2019 · 322 posts · 200 votes
    2y

    @Cameron Fowler,

    A good number of folks on this thread, like Andrew Syrios and Travis Biziorek, have helpfully mentioned the Midwest as a good place to invest for cash flow.

    I’d also like to put Sunbelt states like Alabama on your radar as well—many markets there (e.g. Birmingham, Tuscaloosa, Montgomery, etc.) feature similarly affordable properties that command good cash flow.

    Alabama also has one of the lowest property tax rates in the country (about 0.4% of property value). Of course, these property tax rates are priced into gross rents, but my experience is that NOI margins on rentals here are higher than in surrounding states.

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  • Joseph Beatty
    Member since 2024 · 41 posts · 12 votes
    2y

    My brokerage is located in Pittsburgh, and the trend that I've seen recently is a lot of former renters switching over to flipping properties instead. This market is definitely easier to get into though compared to others. 

    0Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    I have seen areas like Cleveland and Dayton with COC ranging from 10-18% and Columbus is around 8-12% with strong growth. I personally love Columbus in terms of doing value add. There has been significant growth, especially with tech giants like Intel, Meta, Amazon, and Google setting up operations (2 data centers), driving up property prices and job opportunities. I invest heavily here myself with reliable contractors. Happy to connect and share my experience

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Cameron Fowler:

    For those looking to invest out of state, what are the top cities you have been looking into? I am in Indianapolis and It seems there is a large push to invest here. What markets have others seen to be on the upward trend to try and work into? Comment what your experience has been. 

     Indy was 7 years ago. Cleveland has been one of if not the #1 overall rental market in America for the last 10 years, If Indy was great, we would have " set up shop there" .  Forbes had it as #1 back in 2017 n 18, but they were not paying attention. We used to get 30 35% NET caps at all in pricing of about 30k. Now those same props are selling for 110- 160k.MASSIVE mistake not keeping 50 or so more of the ones I flipped, SO DUMB!!  We are still getting 15- 20% nets . I am sure there are some here and there in Indy, 

    Good luck 

    2Reply
  • Account Closed
    Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    2y

    Hi, yes Ohio is a place that people are interested in investing in real estate. Come check it out and reach of if you have any questions. Good Luck!

    1Reply
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