local or out of state investing for a new investor

[Brian Taylor]

Hello all,  

I'm doing some research in preparation for buying my first rental property.  I live in huntsville, AL.  There is a hot real estate market here right now.  I'm trying to decide whether to invest locally in Huntsville or back in the St. Louis area where I am from originally.  I expect Huntsville has the hotter, faster growing market, but properties may come at less of a premium in the St. Louis area.  I'd appreciate any insight anyone has, either in these markets or between local and out of state investing in general.  Also, if anyone has any metrics they use to decide on a market I would appreciate it if you could share those as well.  Thanks.

[David Ounanian]

@Brian Taylor great chatting with you this morning!  I just saw your post so I thought I'd chime in as well.  As we discussed on the call my philosophy has always been CASHFLOW first and appreciation as a bonus (or the cherry on top).  I pulled statistics on the median sales price for St. Louis, MO and Huntsville, AL and both markets have been appreciating quite well.  I did notice the last 2-3 years it seems that Huntsville has really pulled away as the median sales price broke $300k.  This may make it more challenging to find cashflowing properties and it may make this market more volatile when the market turns back the other way.