Most positive cash flow cities, tax friendly states, Landlord friendly states?

[Brian Jackson]

I am in Southern California and plan to purchase and keep a long term rental property locally even though its cash flow negative and the landlord tenant rights aren't great because I know the area and can do repairs on it myself.  It is going to be cash negative for a long time but at the end I think it will appreciate significantly and have a strong positive cash flow.

That said before I sink my obligations into this I wanted to run the numbers against the most cash flow positive areas.  Cash flow positive rentals would not tie up my finances as much and allow me to turn around and buy more.  So with that said what are the most:

1) Positive cashflow cities?

2) Tax friendly states?

3) Landlord friendly states?

[Randy Rodenhouse]

I have bought sold either properties or notes in about 30 states.  I am not going to list the good, bad and ugly for each but mention just a few things that stand out.  

South Carolina (where I live) is a great state for many things but not rental real estate.  Why? Because the property tax as a non-owner occupied property is about 3-4 times the amount of a owner occupied property.  The owner occupant rate is super low compared to many states but as a rental it goes up alot.  The insurance is higher along the coastal areas because of potential hurricanes but not bad the further north you go.  Now it is a pretty landlord friendly state.

Ohio - property taxes are high relative to many other states but in many cities the rental rates are high (better cash flow) as a compared to the house price and therefore a relatively low price-to-rent ratio.  I have been in Cleveland but not my favorite city in Ohio.  Prefer Dayton, Akron, Columbus.

Tennessee - is a lower property tax state and the properties cash flow pretty well.  The price-to-rent ratio is also low.  Just stay out of the higher crime areas of Memphis.  

Alabama - super low property tax but the rents are lower as well but all in all a good cash flow state.  

So many state so few time - I also like many parts of Georgia, Mississippi, North Carolina (Southern States) which are pretty landlord friendly and have lower property tax.  Also like Oklahoma, Indiana, and Texas.