Investing Beyond LA: Smart Property Investment Strategies for Higher Returns
Investing Beyond LA: Smart Property Investment Strategies for Higher Returns
In today's real estate market, Los Angeles properties command premium prices that can make traditional investment strategies like fix-and-flips or long-term rentals increasingly challenging for investors seeking strong returns. At The Build Club, we understand that diversification is key to building a resilient investment portfolio with consistent passive income.
While LA remains a desirable market, savvy investors are looking beyond California's borders to markets where property values, entry costs, and potential returns create more favorable investment conditions. Our team has established strong operations in Ohio, Tennessee, and Kansas City—markets that offer compelling alternatives with lower buy-in costs and often superior ROI compared to Los Angeles.
Why Look Beyond Los Angeles?
The LA real estate market presents several challenges for investors:
- High property acquisition costs
- Compressed profit margins on renovations
- Lower cap rates on rental properties
- Longer timeframes to recoup initial investments
- Stricter regulatory environment
Where Smart Money is Moving
Our investment and construction teams have carefully selected three markets that consistently deliver exceptional returns for our investors:
Ohio
The Buckeye State offers remarkable value with entry points often 1/4 to 1/5 of comparable Los Angeles properties. Cities like Columbus, Cincinnati, and Cleveland feature:
- Strong job growth in healthcare, education, and technology
- Major university presence creating rental demand
- Revitalized downtown areas attracting young professionals
- Cash flow positive properties from day one
Tennessee
Nashville and surrounding areas continue to experience population growth and economic expansion:
- No state income tax
- Business-friendly regulatory environment
- Growing tech and healthcare sectors
- Strong tourism industry supporting short-term rental opportunities
- Appreciation rates consistently outpacing national averages
Kansas City
Straddling two states (Missouri and Kansas), this market offers:
- Affordable entry points with single-family homes starting under $150K
- Strong rental demand across diverse neighborhoods
- Major employers including federal government offices
- Revitalization projects creating appreciation opportunities
- Landlord-friendly regulations
The Build Club Advantage
What sets us apart is our comprehensive approach to out-of-state investing:
- We maintain full-time teams in each market, including contractors, property managers, attorneys, and realtors
- Our renovation crews operate under strict quality standards established in the competitive LA market
- We handle all aspects from acquisition to renovation to tenant placement
- Legal and compliance teams ensure all investments are properly structured and protected
- Regular reporting and property inspections provide peace of mind
Real Numbers: LA vs. Our Target Markets
When comparing a typical $1M investment:
| Market | Properties Acquired | Monthly Cash Flow | Annual ROI | Time to Recoup Investment |
|---|---|---|---|---|
| Los Angeles | 1 single-family | $1,200-1,800 | 2-3% | 15-20 years |
| Ohio | 5-7 properties | $4,500-6,000 | 7-9% | 8-10 years |
| Tennessee | 4-5 properties | $3,800-5,200 | 6-8% | 9-12 years |
| Kansas City | 5-6 properties | $4,200-5,800 | 7-9% | 8-11 years |
Next Steps
Ready to diversify your real estate portfolio beyond the constraints of the Los Angeles market? The Build Club's team of investment specialists can provide a free consultation to discuss your investment goals and how our expertise in these high-performing markets can help you achieve stronger returns with lower initial capital requirements.
Contact us today to learn more about our current investment opportunities in Ohio, Tennessee, and Kansas City, and discover how our turnkey approach takes the complexity out of out-of-state real estate investing.