All Forum Posts by: Ivette Raygoza

@Ivette Raygoza

Investing out of state can be a great way to find better cash flow and affordability compared to California. Start by selecting a market with strong job growth, population increases, landlord-friendly laws, and a good rent-to-price ratio—states like Texas, Tennessee, and Florida often fit these criteria. Use tools like BiggerPockets calculators, Rentometer, and Zillow to analyze deals, and consider networking with local investors, property managers, and realtors to gain insight before committing.

Good luck!

Great questions! Choosing a market comes down to a mix of cash flow, appreciation potential, landlord laws, and overall economic stability. Many investors start by looking at population/job growth, rent-to-price ratios, property taxes, and crime rates—sites like City-Data, Rentometer, and BiggerPockets' forums can help with initial research.

For first-time out-of-state investors, the Midwest (Indianapolis, Kansas City, Columbus) and the Southeast (Birmingham, Chattanooga, Greenville, parts of Florida) often offer solid cash flow with lower entry costs. Avoid high-tax, tenant-friendly states unless appreciation is the play.

Biggest lesson? Have a reliable local team—property manager, realtor, contractor—before committing.

There is a book published on BP called Long Distance Real Estate Investing, which got great reviews from people who were starting out in long-distance investing. You can buy it on Amazon, too.

Hey Ivette, you should do some research to find the right market for you. A lot of investors go out of state because the numbers just don’t work locally. You should talk to your lender to figure out what you can afford, then look for markets where you can buy single families or duplexes within that price range.

For rent prices, check out Rentometer or the 'Price My Rental' tool on Zillow. For neighborhood info, Niche and Roofstock are great resources. And don't forget, you can always use Google Maps Street View to get a feel for the area.

Best of luck on your search!

Hi @Ivette Raygoza!

Investing out of state can be a great move, but choosing the right market is key. You want strong job growth, steady population trends, landlord-friendly laws, and solid rent-to-price ratios. Memphis stands out with its affordable properties, high rental demand, and major employers like FedEx, St. Jude, and Ford’s Blue Oval project bringing in thousands of jobs. To analyze a market, investors use tools like BiggerPockets, Rentometer, and Trulia while also considering appreciation trends, property management costs, and tenant demand. Turnkey providers can make things easier by handling renovations, tenant placement, and management. For first-time out-of-state investors, states like Tennessee, Texas, and Florida are great options, while high-tax, rent-controlled areas can be trickier. If you’re looking for a hands-off investment, Memphis has plenty of fully renovated, tenant-ready properties with management in place, making it a solid choice for long-distance investing. Let me know if you need help narrowing down your options!

Really great questions. Getting clear on your market and strategy up front makes a huge difference, especially when you’re investing out of state.

If you’re open to it, I’d suggest exploring multifamily instead of single-family. Even small multifamily (like 10–50 units) can offer a more stable, scalable experience for a few reasons:

• Vacancy risk is spread out—you’re not dependent on one door to cover your mortgage
• Operational efficiency—it’s easier to justify good third-party management, and maintenance costs are more consolidated
• Income-based valuation—unlike single family, multifamily is valued based on the income it produces, which gives you more control over appreciation

As for where, the Midwest has been a great fit for that kind of strategy. It’s not flashy, but that’s kind of the point. Cities like Indianapolis, Columbus, and Kansas City have shown:

• Steady rent growth for decades, even during national downturns
• Lower volatility—they don’t have the wild swings in pricing or demand that some coastal or boomtown markets face
• Landlord-friendly laws, which is a big plus when you’re managing from a distance
• And the affordability gap keeps demand for rentals strong, especially in workforce housing

Another thing to consider: the higher the asset class (A or B), the lower the operational risk tends to be. These properties attract more stable tenants, often require less ongoing capital expenditure, and historically perform better through economic cycles. Especially when located in markets with strong fundamentals.

If your goal is long term wealth building with less drama, it’s hard to beat the “slow and steady” profile of multifamily in the Midwest. The cash flow may not be jaw dropping on day one, but the risk adjusted returns and long term durability often speak for themselves.

this is a very tricky question to answer, because there are so many choices out there. I can tell you: You should invest in Philly becasue "blah blah blah"

And inevitably someone will say: Don't invest in philly!

This is the cash for every market out there. 

The answer to this questions is simple. The best market to invest in, is the one you know best.

I live in Philly and grew up here. I'm still learning about little pockets here and there and other zoning challenges, etc. 

if I were you I would start in your neighborhood. If yours is too expensive, perhaps you have family members or close friends in more affordable areas. Start there and get to know those areas as well as possible, and then invest. 

Also don't fall into the trap of investing into an area because its cheap.

 Hi Ivette,

You've already had some local investors post here, which is excellent.  You are in an area with literally thousands of investors.  If you attend meet-ups and search for local area investors here on BP, you will find a lot that are willing to share and help.  You will also find investors who have achieved exactly what you want.

I would suggest really looking hard locally before branching out and buying out of state.  My families' company works with a number of investors in the LA area and have been providing passive investments to investors like yourself for two decades.  And yet, I still advise looking local first.  It will be the most informative route to take and the one that will allow you to learn the most.  It will also undoubtedly be the most profitable over time, but will take a lot of work on your part.  You can reduce the amount of work and time you have to put in, but nothing can beat the learning curve you will be on when you invest locally and hands-on.

If you find that you want to go out of state and be more passive, there are plenty of routes to take, as well as more than a fair share of local investors who invest 100% passively and only out of state. They can also be found at your local REIA meetings and meet-ups and here on BP.

Be patient!  Don't be in a hurry.  There are a lot of professionals here on the site and even users who do nothing but invest, and many of us are here to help if you ask.  I can assure you that the opportunity to get started and build a RE portfolio that provides the long-term outcomes you seek exists today.  It just takes patience and a willingness to connect!

Best to you as you get started ~

Is there a place that you already like going to, or is it just a numbers crunch?

Hi Ivette, if you're looking to invest out of state, I would recommend taking a look at Columbus Ohio! A lot of my out of state real estate clients really like this market because the macroeconomics look so good for this market - population is growing, job growth is growing, and so many companies moving and developing here. Look at Intel headquarters, Google, FB, Microsoft, LG, Amazon, Nationwide, Honda, etc. Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and it's super landlord friendly (so you will never have to go through a 12 month eviction or anything close to that!). Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k! 

To answer the other part of your question, the biggest thing when it comes to whether someone successfully out of state is whether they have systems, processes, and a SOLID real estate team - agent, lender, PM, contractors, etc.

Your investor agent should be the focal part of your team - they should be able to send you personalized deals (on-market, off-market, pocket listings, etc), they should walk properties and provide investor commentary for why it's a good/bad deal, estimate renovations and develop a scope of work, and should be able to build the rest of your real estate team!

Happy to connect and answer any questions you have! :)

Happy to connect and answer any questions you have!