Where should I reinvest?

[Toby Johnston]

I'm in contract to sell a rental property in San Jose, CA and trying to decide what to do with the proceeds. Given that the numbers don't really work where I live, I'm willing to invest out of state. My primary focus is SFR or small multi-family rental. I'm a long-term buy and hold investor. Ideally I'd like to buy somewhere with favorable long-term demographics, warmer weather, and low taxes but it seems like prices have really run up in a lot of places I look. Any suggestions for me? Ideally I want it to be a short plane ride away so I've ruled out the East Coast including Florida. Should I just sit on the money for a while to see if we have a market correction? I'm afraid of missing out on low interest rates if I wait too long. Thanks for your thoughts.

[Amit M.]

to whomever. Yeah look, I'm not interested in a pissing match on cash flow vs appreciation. My only point was, how many small/mid size RE investors do you know who have made a few million dollars from cash flow? I know many small/mid size investors in the Bay Area who have a few million dollars in equity. And they still have their equity, just a few years after the "Great Recession." Plus they have cash flow too, although maybe not as much as other places optimized for cash flow.