anything online that compares nationwide cash flows? in my market, positive cash flow is great at 100 bucks-i bet this isn't the case everywhere...

any input?

i have heard texas and tenn. are good locations..

thoughts?

There is no good substitute for getting local information from locals.

You can do preliminary work right from your desk. Check out online versions of local papers and magazines. If all that looks good (IE: Good population that shows growth, diverse local economy, low unemployment, etc), take a tax deductable trip there and look closer.

Drive around and see what is what. Talk to local real estate agents, property managers, etc. Are apartments offering big incentives to get people to move in? If so, that usually means there are more units than there are renters. Look for smaller niche areas in the city your interested in.

Ok, so those were some thoughts.

I think Texas looks good. If you use the criteria I talked about above, Austin seems like a good bet. College town, considered an artistic center - a town with lots of character. Several nice submarkets in the city. Lots of recent growth and improvements downtown. Pretty diverse economy with hi-tech and other industries scattered around. Vacancy rates were low last time I checked and it has had positive population growth consistently(again, last time I checked - it's been a little while).

I guess I am a little paranoid about trusting data I would use to base an investment decision on when it would come from some online supplier. When online folks can't even get SFR property values right, what can I expect from some automated system to ballpark cash flows?

R

Texas and Tennessee are big places - and the rental market is fairly specialized.

I live just east of Atlanta and find that I can get to the sweet spot of 1% rents and decent appreciation. Pay close attention and you can have a shot at conversion to commercial and a big appreciation.

Just a few miles closer to Atlanta and the market is very different - much higher home prices but rent falls short of 1% of appraisal. Here you have the potential of going commercial or in-town rehab.

A few miles north of Atlanta, even higher home prices, higher rents, little or no potential for commercial or rehab conversion.

North of where I live is a college town where the rental market is a whole different ball game - renting to college students can be a much more intensive business.

Rental investing isn't like mutual funds, you have to know your market and adjust your business plan to go after the specific market you're interested in.

V_Jeremy....well said.