Metrics Median price: $259,900 Median rent: $1,636 Rent-to-price ratio: 0.63% Five-year job growth: 13.3% Ocala is a small but growing market. The majority of the jobs here are in government, healthcare, and manufacturing. It also helps that Ocala is located in inland Florida. This reduces the impact hurricanes have here, and Ocala is likely to have lower insurance costs over time than cities directly on the coast. My only concern as an investor is that there has been an equally strong growth in housing supply, and the vacancy rate sits at 12.9%. If I were to invest here, I would need to rely on my property manager to ensure I buy in the right neighborhood and have a property that attracts the right tenants. (But this argument also applies to investing in any market.) What Else to Look For in Cash Flow Markets Investing out of state can be daunting if you’ve never done it before, especially if you’re unfamiliar with the market. So I asked Zach Lemaster, CEO of Rent to Retirement, what his advice was for researching the best out-of-state markets, what to avoid, and how to get started. His response: The most successful investors strategically choose the right market to invest in based on their goals, instead of only focusing on their local market because it feels comfortable. The best place to start is to be very intentional in mapping out your investment criteria. I recommend identifying three markets that generally fit your criteria. Next, you must connect with local professionals that are familiar with the market to learn more intricate details of each market. Many markets can vary dramatically between favorable and unfavorable neighborhoods to invest in within a few short miles. That is why leveraging local knowledge is absolutely essential when exploring a new market. Once you’ve narrowed your search and identified properties that fit your criteria, take action to actually acquire the properties so you don’t fall into the perpetual analysis paralysis that prevent so many from accomplishing their goals. Finally, be meticulous in tracking performance. You never fully know a market until you actually invest there. Don’t be afraid to go back to the drawing board if your initial market choice is not performing as expected. Remember, real estate investing is a lifelong journey where we are always refining our goals and criteria! Look to Rent to Retirement for Investment Properties As you can see, a lot of work goes into finding, buying, and managing out-of-state properties. If you’d like help with this process, Rent to Retirement offers hands-off investment properties (here’s a quick list of them) with healthy cash flow in key markets.
