Where to invest $70,000 in buy and hold

[Donald M.]

Let's say I have $70,000 to invest. I have a chance to get a 5.2% return outside of real estate. As a buy and hold investor, if I can get more than this return, where should I invest/what is the best strategy in order to maximize cash flow? 

The Boston market is extremely expensive; if I am willing to invest out-of-state (which will require my finding a great management team), should I use this as cash for a single property, use it as a down payment for one property, or for multiple simultaneously? How should I identify potential markets? The number cruncher in me would like to obtain national zip code data on rental prices and median purchase prices to calculate where I can the best deal, but I don't want to pay for such data and go through the calculations if it won't be remotely feasible or if there are obvious markets I should be looking at.

[Aaron Montague]

@Donald M. 

I'm looking at 20% Cash on Cash return in my primary market in Vermont.  

Indy has several investors on BP with good looking rentals.  I haven't verified them but the numbers are good.

In the Boston area I'd look at Everett for flipping 3 families in to Condos in front of the casino.  Go quick on that one.

Just outside of Boston:

Lawrence/Lowell - Rough areas, solid rents, good returns

Worcester - College rentals abound

I wouldn't grab too much data like the set you are talking about.  Find yourself a zip code that meets your criteria and become the expert.  I'd recommend something within reasonable(whatever that means to you) driving distance but that doesn't mean you can't be wildly successful on the other side of the continent.