What are the advantages of investing in large cities?

[Grady Cool]

I hear a lot about the positive cash flow from investing in smaller cities where there is less competition like Milwaukee or Cleveland and the lack of cash flow for places like New York City or Los Angeles. I may be moving to one of these larger cities for a new job in the coming months. Is there any significant advantages to investing in one of the country’s biggest cities? 

[Nicholas L.]

@Grady Cool

There isn't a one to one correlation between city size / cash flow / competition.  It's just going to be different depending on the market and it's tough to compare giant markets like the ones you mentioned.

Random examples...

Indianapolis is different from / has a much lower median price than Austin.  But they are comparable in population and both growing.

Chicago is different from / has a much lower median price than LA.  Neither is growing quickly (at the moment.)

With that said... most people would not ask "Should I invest in LA or Cleveland?"  They are radically different markets with radically different price points.

If you're moving to a place for a job... try to house hack there.