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When you’re investing in U.S. real estate from abroad, location isn’t about scenery; it’s about strategy. For foreign nationals looking to scale, the most affordable markets often provide the most flexibility. Lower purchase prices mean lower down payments, smaller loan amounts, and more manageable monthly expenses. That makes it easier to qualify for financing, especially for foreign nationals looking for good deals.
This guide covers where foreign investors are buying affordable rental properties in the U.S., why those markets work well with debt-service-soverage-ratio (DSCR) loans, and more to consider before investing.
Scaling your real estate portfolio in high-cost markets often takes significant capital. In contrast, your capital stretches further in lower-priced cities. This can be the difference between buying one property and buying three.
For international investors aiming to build a scalable U.S. rental portfolio, affordable markets offer key advantages that make your cash work harder. Here are three reasons why these markets enable greater cash leverage and down payment efficiency:
1. Lower barrier to entry: Because property prices are lower, your upfront cash needed for down payments is reduced. For example, investment property loans for foreign nationals can require around 30% as a downpayment. That means the down payment on a $150,000 purchase would be $45,000 compared to a $500,000 property which would require a $150,000 down payment!Â
2. Stronger rent-to-price ratios make qualification easier: Affordable markets often have better rent-to-price ratios, meaning the rental income generated more easily covers mortgage payments. When properties cash flow, it becomes significantly easier to obtain financing—and more profitable investments.
3. Faster growth without draining cash: Lower down payments and stronger rental income allow you to leverage your capital efficiently, helping you grow your portfolio faster. Instead of tying up all your cash in one expensive property, you can spread it across multiple investments, maintaining liquidity and scaling steadily.
According to the most recent NAR report, financing is one of the major reasons that potential international buyers decided not to purchase property. However, DSCR loans open the door to a greater proportion of foreigners buying U.S. real estate because these loans are based on the cash flow of a property rather than other factors. Naturally, these loans work particularly well in lower priced markets where cash flow opportunities are greater.
Read more: A Closer Look at Foreign Buyers Purchasing U.S. Real Estate
DSCR stands for debt-service-coverage-ratio: a simple calculation of how much rental income your property brings in compared to the cost of the loan. If your projected rental income covers or exceeds the monthly mortgage, you’re more likely to qualify. DSCR loans are such a good match for lower-cost markets for the following reasons:
Learn more: How DSCR Loans Work for Foreign Nationals
Affordable doesn’t mean obscure. Many of the markets attracting foreign investors today offer a combination of low purchase prices, strong rental demand, and favorable conditions for landlords. Below are five states where Waltz clients and thousands of other global investors are buying property and building portfolios.
Get more insights: 5 Things the NAR Report Reveals About Foreign Buyers
Ohio is an extremely popular destination for foreign investors. Cities like Cleveland and Cincinnati offer strong rent-to-price ratios, making them ideal for DSCR loan qualification. Cleveland, in particular, has emerged as a popular option due to its low entry prices and abundance of multi-family properties.
Learn more: Dennis’ Cleveland Investment
Texas remains a magnet for international investors, especially those from Mexico, due to its growing economy, no state income tax, and landlord-friendly laws. While Austin has become pricier, there are still deals to be found. In addition, Dallas-Fort Worth, Houston, and San Antonio among others present value at different price points.
Read more: Canadian Investor Finds Success in Texas
Florida continues to lead the nation in foreign buyer activity, accounting for 21% of all international purchases in 2025. For many buying from abroad, Florida offers attractive price points compared to their home countries.
The state offers a powerful mix of investment advantages: no state income tax, strong tourism-driven demand, and the flexibility to operate properties as short-term vacation rentals or long-term leases. It’s also known for its business-friendly environment, streamlined regulations, and global accessibility, with major international airports and a well-established reputation among Latin American, European, and Canadian investors.
Learn more: Yan’s Experience in Florida
With low property taxes and a relatively short eviction process, Alabama provides favorable conditions for landlords. Tuscaloosa and Huntsville, in particular, have drawn investor interest due to its steady rental demand and affordability.
Explore more: Israeli Investor Purchases a Turnkey Property in a College Town
For foreign investors, affordable U.S. markets offer a smart path to building a rental portfolio with lower upfront costs, cash flow potential, and greater room to scale. These markets reduce entry barriers, making them intriguing starting points when investing from abroad.
DSCR loans make this strategy even more powerful, especially in markets where cash flow is strong and prices are low. Instead of relying on your U.S. credit score or personal income, these loans allow you to qualify based on the rental income of the property.
Waltz helps you take full advantage of this opportunity. Our platform is built specifically for international investors, offering streamlined financing in 41 states and Washington D.C. You don’t need a U.S. credit history or tax returns—and you can do everything remotely.
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