Is there more profit renting in some states opposed to others?

[Daniel Patterson]

On Long Island, especially in my town Massapequa/Plainedge, taxes for a single family home are high... like 15k-25k high. Now I have read that homes of similar sqft and condition in other states have lower taxes. 5K or just anything around there and obviously lower sale prices. So I'm really stuck on deciding which state is best to rent a home in. Or if it doesn't matter because rent prices are adjusted statewise. Should I save up to buy a home where I live, or should I buy something in another state for a lower price that would easier for me to afford. I'm obviously trying to make the most profit. So I guess another side question would be.. Would it be smarter to buy out of state so I would have a lesser mortgage to pay because I put more money down. Or if I buy in NY, put 20% down, and taking on a bigger mortgage. I'm sorry this is all over, I'm just not sure how to word it properly. I'm also asking this before I have ran any numbers myself. Just trying to see if anyone has seen this question asked before and knows a quick answer. Any comment will help!! 

Thanks!

[Joe Villeneuve]

Most definitely. This is why I tell new REI to ignore others that tell them to invest where they live "because they know that area".  If you really know that area, and listen to what that area is telling you, it may be saying, "don't invest here".

You have to find the markets, then the micro-markets within that market, that are conducive to the strategies you are using.  You can't force your strategy on a market because you want to invest in that market...that market may not want you.

I have a partner who has another partner arrangement with an investor from California.  The reason that California investor invests here in Michigan is because, and these are his words, "I can invest $1M in California and make $100,000, or I can invest $100,000 in Michigan, and make $1M".