This article is presented by Rent To Retirement.
Imagine you were looking for a potential rental in your neighborhood, only to find a three-bed, one-bath fixer-upper listed at $650,000 and a potential rent price of just $2,300 per month. I’d spit out my coffee.
But unfortunately, this scenario isn’t just imagination for some investors. The truth is that this isn’t the same time as when the 1% rule was king, and you could find a house to buy for $230,000 that would rent for $2,300. But now, with interest rates hovering near 7%, home prices rising, property taxes at their peak, and insurance premiums so high you’re wondering if your agent is insuring a spaceship, that deal is dead on arrival.
You’re not alone. Across the country, investors in high-cost markets like California, New York, and Colorado are experiencing a collective “what now” moment. The old strategy of buying close to home and hoping for appreciation has been replaced by bidding wars, paper-thin margins, and rent control laws that feel like they were written by someone who has never owned a toilet.
So what do you do when the numbers don’t work in your own backyard? You take a deep breath and start investing in someone else’s.
Meet Sarah: The Accidental Out-of-State Investor
Sarah is a teacher from Los Angeles who saved up for her first rental. She spent months searching for a property in her neighborhood and finally started making offers. She narrowed down her choices and decided that looking at the lower end of the market would make it work. Spoiler alert: It did not work.
She found a one-bedroom condo with an HOA fee that could pay someone’s salary in the Midwest. As she moved through the purchase process, she quickly realized how much it would cost to actually own the place. This would put her into the red each month, and the only way to achieve profitability was if her tenant accidentally left behind a winning lottery ticket. She needed to pivot and see what more experienced investors are doing.
That’s when she found Rent To Retirement.
In two months, Sarah bought a turnkey duplex in Oklahoma City. Here’s what her deal looked like:
- Purchase price: $180,000
- Down payment: $36,000
- Monthly rent: $2,200
- Net monthly cash flow after all expenses: $400+
Now Sarah’s on her third property and doesn’t even flinch when someone says “property taxes” anymore.
But What About Appreciation?
Yes, appreciation in the Midwest or Southeast might not mirror the swings you see in coastal markets, but try telling that to Marcus. He’s an IT consultant from New Jersey who bought three single-family homes in Jacksonville, Florida, using Rent To Retirement.
Each home costs between $210,000 and $240,000. In under two years, rents increased by 15% to 20%, and Marcus was able to complete a cash-out refinance and acquire another duplex in Missouri. He jokes that his properties are multiplying like rabbits—except these rabbits pay rent and never complain about HOA newsletters.
It’s Not Just About Price. It’s About the Rules.
Imagine buying a fourplex in your city, spending $40,000 on renovations, and just as you’re about to raise rents, the city passes a rent control ordinance that freezes everything. Welcome to being a landlord in a market that treats you like a villain.
This is why landlord-friendly markets matter.
Rent To Retirement focuses on cities where you can be a landlord. Places where:
- Lease violations are enforceable.
- Property taxes are reasonable.
- Evictions don’t require a legal drama series.
How This All Works Without Losing Your Mind
The No. 1 objection to out-of-state investing is usually, “I don’t want to manage a property I can’t drive to.” That’s a valid concern, which is why Rent To Retirement connects you with experienced property managers, lenders, contractors, and agents already working in those markets. They have done all the vetting for you, so you don’t need to spend hours on Zoom calls trying to figure out if the contractor you found on Facebook Marketplace isn’t going to end up working out.
You don’t have to memorize the ZIP codes of Little Rock or learn the difference between zoning overlays in Tulsa. You just need to understand the numbers and rely on the team that lives there and manages the day-to-day.
This is not a house-flipping fantasy. This is long-term investing with:
- Real cash flow
- Lower entry costs
- Teams in place to manage the messes
So What Now?
If you are frustrated or stuck or one HOA meeting away from giving up, take it as a sign. The dream of owning rentals that cash flow is not dead. It just moved.
Rent To Retirement helps investors find properties in markets where the math still works. They’ve helped thousands of people build portfolios in places they never thought to look.
Check them out. Look at their markets. Run the numbers. Investing is not just about sticking to your ZIP code. It is about sticking to what works.