How to Determine a Good Area to Invest In for a First Timer

[David Ruiz]

Hi BP Community,

I live in Los Angeles, California, which seems to be completely out of my price range for a first time buyer. I am looking to invest in an owner duplex/triplex/quadplex that can generate income, gain me experience, and build profit for future investments. 

How do I determine what cities and states are good places to invest in? 

[Rob Beardsley]

I would look to any areas that you have a connection to first. If you have family that lives in Texas, consider investing there. A simple way to screen markets to determine if there is reasonable cash flow is to google the cap rates for cities and different markets. Average cap rates above 6% would be a market worth looking into.