There are tons of markets out there that meet your qualifications, but you'll need to start looking outside of your local market. Read David Greene's book on Investing in Long Distance Real Estate, it will help you a ton in the future. It's advice that I need to take too, but haven't yet.
You'll find lots of books and topics on this site if you search both the forums and the blog. Having people on the ground that you trust and having good PM are some big ones. Also choosing a good market with JOBS, population growth, and demand for rental units. I live in CA and I invest in Kansas City. If you search my posts you'll find a bunch of information on how I do it.
Originally posted by @Will Lobban-Bean :
I own two duplex properties in Los Angeles, but am looking to get into other markets with lower housing prices but strong rents. I’d like to buy and hold. Anybody have suggestions of good markets and also any advice for owning real estate in other states? My biggest concern is not being within driving distance to a property and not being able to take care of problems if I need to be there. Thanks!
Will, what kind of problems do you plan to take care of yourself? That's called being a landlord, not an investor. Personally, I think it's best to choose a market based on how well it achieves your investment goals and objectives, not on how close it is to you. You haven't said what your objective and criteria is but if you're looking for strong cash flow, you can't beat the Midwest. I like Indianapolis and Kansas City and have been active there for several years.
It depends if you are looking for cash flow, as well as how hands off you want to be. If you are looking relatively passive you might want to check out my article on Three Key Routes for Passive Real Estate Investing