@Evan Oaks This is a great community and all of the comments have been very positive. But I’m not a realtor, I’m an investor like you. So let me help temper your expectations, as I (like everyone else) am always looking for the next deal.
Don't use the MLS or sites like CoStar with the intention to buy based on your findings. They have the deals that brokers couldn't get anyone to buy off market in their phone book of investors, so they ended up on there where the entire world now has direct access. Will most always be high priced. Research markets and states that have the cities you feel confident in based on your long (or short) term goals and then reach out to brokers there. A simple post like this when you've narrowed things down will help everyone help you.
Out of state investing, to me, is most helpful in gaining access to one thing: price points. If things are priced high and are of good quality where you live, then buy those, right? Well we obviously can’t if we lack capital and the numbers don’t work for our goals. You MUST have your goals clearly laid out before you start shopping around. Some markets in Ohio are good for cash flow but not great for appreciation. So what happens if the home hasn’t appreciated beyond what you paid for it and you go to sell in a few years for whatever reason? You aren’t getting all of your money back due to the costs of selling the home, and the venture may not have been as lucrative as you planned. The short term, cash flow-only purchase means you bought bonds at that point, not real estate.
I have a simple cash flow and appreciation target for any deal, and it’s the same no matter what state I’m looking in. Again, investing out of state is all about access to price point for me. If a property cash flows close to my target, has modest (and I mean modest) appreciation forecasts at least, and is in an area with some semblance of a bright future (shows slight growth, landlord friendly, etc) then it’s a buy.
You’re doing the right thing by venturing beyond where you are if nothing near you seemingly works.
Lastly I’ll reiterate that you also MUST do your own research about the place you’d consider investing. If my goal was to sell houses then I might be a bit biased about my market. If it were me as the realtor I would 100% have a sense of optimism about my market, and rightfully so. I’m selling there because I believe in it. But you need to be even keeled and scrutinies of where you put your money, so measure a hundred times and cut once.
Best of luck to you!
