Need help narrowing down area to invest

[Christopher Olsen]

I’ve been reading everything on BP. I have two properties in Utah one vacation and one commercial. I’m looking to get into multi family. Originally I was set on Texas as I’ve spent a lot of time there and after finding out about the taxes I second guessed it. I’m looking to build cash flow with some appreciation. Sounds like you can’t have Great appreciation and cash flow. I’ve been considering OKlahoma and everyone seems to be loving Midwest markets like Kansas City and Columbus. I live in California and have been considering doing a brrrr here if it makes sense just a higher entry level. I have made good connections in California as far as a team that could tackle a remodel.

Just looking for advice on where might be a good place to start. Do I focus on KC, Ohio or Oklahoma?

I feel like attempting a brrrr out of state sounds more complicated but is doable. Looking to build passive income as well as get some appreciation over the years.

[Joe Villeneuve]

Market analysis is a very critical part of successful REI. The goal is to find Micro-markets where potential profit and/or CF of similar properties (same size) are found in groups and where they define what the entry cost must be to make that profit or CF.

All of the areas you mentioned, including Texas and California, and more, have that potential.  Some of the areas more so than others.  If I had to answer the last question you posed, "Do I focus on KC, Ohio or Oklahoma?", I would have to answer, "yes...but not all areas within those States".

The key is to set your requirements for minimum CF and Profit, then analyze each of those areas to find the Micro-markets within those areas to find MM's (if they exist) that match your requirements.