Hey Ravi, you're in a great position..good savings, a steady job, and the flexibility to invest out of state. That's the kind of setup that lets investors scale without being tied to one local market. Now it's just a matter of figuring out where to buy and what type of property best fits your goals. Since you're focused on cash flow, multifamily tends to give you the best stability. If one tenant moves out, you still have rent coming in, and expenses like property management or repairs get spread across multiple units. That said, competition can be fierce, and in some markets, good deals get snatched up quickly. Single-family homes are easier to finance and resell, but vacancy risk is higher. Townhomes sometimes work, but HOA fees can eat into your margins... always run the numbers to see if the cash flow holds up. For location, since you're based in New Jersey but looking to invest out of state, I'd focus on landlord-friendly markets where rental demand is strong. Some solid cash flow cities include Indianapolis, Kansas City, Memphis, San Antonio, and parts of Florida like Jacksonville and Lakeland. From what I've read in Forbes, the Southeast and Midwest are still seeing strong rental demand because of affordability and population growth. Chicago and Omaha also have interesting opportunites if you target the right neighborhoods. A buddy of mine helped an investor from the Northeast buy a small multifamily in the Southeast, and the biggest lesson? Having a solid team on the ground is everything. The investor found a deal that looked great on paper... rents were under market, and there was upside potential... but he made the mistake of hiring the first property manager he came across. Within a few months, maintenance requests were piling up, and some tenants weren't even paying rent. He had to fire the manager and scramble to find a better team. The lesson? Before you buy, spend time building a local team..a knowledgeable agent, a reliable property manager, and a good handyman or contractor can make or break your investment. Another investor I know went all-in on a single-family rental, assuming it would be easier to manage remotely. Turns out, after a tenant moved out, it sat vacant for two months longer than expected, killing his projected cash flow. He now swears by multifamily because the risk is spread out. That's why running different scenarios is so important every market and property type has trade offs. On the question of how much to invest, it really depends on your financing strategy. Paying all cash maximizes cash flow, but limits how many deals you can do. Most investors go with 20-25% down conventional loans, or if they want to scale faster, they use portfolio loans or DSCR loans. The key is running your numbers like an expert... know your target cash on cash return, factor in maintenace and vacancies, and stress-test deals so you don't get caught off guard. Curious....are you leaning toward investing in a place where you already have some connections, or are you open to a market where you'll need to build a team from scratch? That decision alone could shape your strategy quite a bit.
