Buying MFR in $3-4M. What markets are you investing in and why ??

[Maggie Vineyard]

Hello-

I am looking to buy multifamily in the $3-4M price range toward the end of the year.  I live in Texas and cap rates are compressed here quite a bit so I've begun looking out of state.  Our goal is cash flow and we are fine with a long-term hold.

What other markets are you investing in? 

I know everyone wants to know this but I'd love to hear success stories from investors in this price range!  

I am looking for 7-8% cap rates with a strong economy, and low risk of being overbuilt.  Would appreciate any advice on your success stories in this price range. 

We are transitioning from 1-4 unit properties and looking for income for my father's retirement.  I have been a commercial real estate analyst for 10+ years so understand how to underwrite a building, I'm just not sure what market you can still find good cash flow.

Thanks for your input!!