I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive.

@Polat Caglayan very ambiguosu question, but read the helpful info below to guide your next set of questions:)-------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

The advantage is that rehab loans are based on the value of your home after the improvements.Since Home 1 will be the quickest to move on, please DM me the state where Home 1 is located, the purchase price and how much you have spent on rehabs to-date.

Yours is on a trash can lid.Clearing the road to the top and the building site, set the location on a silver plate.  

The truly tragic natural disasters in California, North Carolina, Florida and others of the past six months are evidence that no location is truly 'climate safe,' however there are geographical areas that can expect less weather extremes and lower costs of living, developing, insuring and seemingly...surviving. 

I think you're doing quite well given the location. 

@Mattin Hosh first, most cities in Metro Detroit have some type of rental property inspection every 2-3 years.It's not really a big deal 99% of the time - especially for owners who are NOT slumlords:)Also, a quick Google search will show that several states/cities are passing/considering similar legislation.One of the biggest mistakes we see newer investors making is NOT properly understanding Neighborhood/Property/Tenant Classes and naively assuming that any rental they buy will deliver Class A results.Read our copy & paste thoughts below and DM us if you'd like to dicuss more about the Detroit market:)-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Prioritize stable cash flow, good location, and manageable property condition, while considering strategies like gradual rent increases, expense reduction, and value-add improvements to enhance returns.

I invest in the Kissimmee area, #1 rule of buying real estate is location. 

Not all homes or locations will give you positive cash flow.