BiggerPockets

Clark - I agree with Dan, pending your strategy you can make things happen in most any state these days. What you more likely really need to be thinking about is what markets do you want to deploy your investment assets in?

There is a huge difference of opportunity in different markets around the country, and different markets favor different asset types at this point in time (ie -single family, multifamily, etc.). It's clearly not all doom and gloom out there.

Houston's housing economy is pretty good for rentals. HomeVestors called it the nations #2 best major city market for REI. Ofcoarse that is homevestors biased opinion, but still.

Lots of good cash flow rentals here, can buy houses for under $50k and rent em out for $700-$950

Check into it

A good idea is to look at population growth and aim to invest in states that are projected to grow rapidly in the future.

However, take into consideration that if, for example, the population in a small town is 100, and than it grows by 25 people, that will give you a huge boost in population percentage but might not be your best choice due to the low amount of population.

Go fo the flyover country nearest to you. I haven't checked but you may want to consider Utah. I'd start at Salt Lake City and then progressively move outward (from what I hear though, you will need a Mormon PM.)

Tim

Indianapolis, IN and Rochester, NY are very solid cash flow markets.

We are also looking into Atlanta.

I disagree with the "invest in your own backyard only" philosophy. In my experience, many investors fail because they try to manage their own properties and sabotage themselves. A good property manager will make your portfolio shine.

If you do not live in a cash flow market, you can not fit the square peg in the round hole.

Find a team of professionals, ask plenty of questions, do your research and make it happen!!!

Hi, I'm in Utah and the market here is suffering too. Because of the "good" economy here and the do it yourself, hard work mentality, the locals and out of state buyers are driving the prices up to where there is little equity. Therefore it becomes more speculative buying. Selling is hard, and so you have to really get a deal to stand out and likely will discount to flip quickly. If you buy to hold, the word on the street here is that we're looking at a 3-5 year upswing.

I use http://www.HomePriceMaps.com to search for realty prices by zipcode or city. Also-if you don't see any data for your area you can email them your info and they will quickly post home data for your area and email you within a day or two. pretty convenient.

Clark, the Texas economy is booming... it has weathered the best through these hard times... I work with investors that are scooping up several large properties in the growth boundaries of Dallas and Austin... they are picking up prime future commercial and multifamily land for less than 4K an acre in some cases. If I were you I would definitely look in those areas. I have found several 5 - 10 acre future commercial corners that I have been purchasing over the last 2 years. And I live in AZ...

Along with the usual caveats concerning cash flow, you might wish to investigate the local government, as well as local ordinances.

Are they pro-renter or pro-landlord? Is rent-control a possibility? How long does it take and how difficult is it to evict a deadbeat? How powerful are the neighborhood homeowner organizations? What about zoning regs (where I'm at no more than three unrelated people are allowed, no matter how many bedrooms). Are building inspectors easy to deal with during rehab? Is the rental in a historic district? Is there a good supply of honest tradesmen to do your work? And so on and so forth.

All my properties cash-flow, but most everything listed above has caused me grief of one kind or another.