Best states to buy investment properties under $150k?

[Bob Roach]

Planning to purchase my first investment property for around $100k. I live in NJ so the east coast would be preferable. Was thinking of PA. NYC and NJ are probably out of my budget. The goal is to buy and hold. Renting the property should cover all costs including management fees.

Which areas would you recommend? Whats the best way to accomplish my goal (start investing in real estate and benefit from the power of leverage)?

[Dan Burstain]

I like Texas in this price range. I feel if you are looking to maximize ROI and not simple cash flow then Texas is a great option. Simply because we are pulling in lots and lots of well paying jobs. Companies from all over are continuing to move to Austin and other markets. Austin also has a huge medical research facility about to open next year as well. We have a strong base with the state capital and University of Texas not going anywhere and Dell, Samsung, Apple, IBM, and many more high tech companies continue to expand here. There are great opportunities to invest and see excellent appreciation while still pulling in nice positive cash flow. Want to make money in real estate, follow the jobs.