Investor's Secret on Selecting Where to Invest - Best Places

[Account Closed]

Today's Phoenix newspaper had the following article - The point being that when you invest for cash flow it is a good idea to find communities where "normal people" can afford the rent & can afford to buy. Whether you are buying a turnkey in Ohio, Tennessee or Arizona you are far ahead of those who are trying to cash flow in California. 

"Phoenix is still the most affordable city in the West on the list."

"Most and least affordable cities"

"Pittsburgh is the most affordable big U.S. city for buying a house, according to the list. A buyer needs to make about $39,900 to afford one there.

Oklahoma City; Cleveland; Memphis, Tennessee; and Indianapolis round out the top five most affordable U.S. cities.

San Jose, California, is the toughest place to afford a home. A buyer needs to earn $257,000 to afford the area’s median price of $1.3 million.

San Francisco, San Diego, Los Angeles and Boston are the rest of the U.S.’ five priciest cities for buying.

Phoenix is still the most affordable city in the West on the list. Las Vegas is next at No. 25."

[Dan H.]

Your statement about buying in Ohio,Tennessee, or Arizona out producing Ca is factually wrong.  30 years ago, 20 years ago, 10 years San Fran, LA, and San Diego were more expensive to purchase than the midwest or Arizona.  Do you know that those 3 Ca cities are the top return on investment in the nation this century according to core logic.  

I realize past history does not necessarily dictate the future but it does point to a flaw in your logic.   

Using your logic Pittsburg would be a better RE investment than Phoenix because it is cheaper to buy there.  

If you want to extol the virtues of RE investing in Phoenix, you would be better served by pointing to growth rate, diversification of employment, redevelopment, etc. than the cost to purchase as historically higher priced areas have produced better ROI for RE than lower priced areas.

Good luck