High rental values ($4k+) in non coastal cities

[John Collins]

I get that there are an abundance of people willing to pay high rent ($4,000 or more per unit) in places like NY, SF, LA, Miami etc. But what about midwestern cities like Chicago, Dallas, Houston and Phoenix/Tempe etc.? If the economy has some slight shocks, are those places going to be filled out a couple years down the road with all the cheaper options available in these places? 

Any general opinions on high rental properties? The ROI compared to multiple lower rent properties as far as 10, 15, 20 year periods?

[Cody L.]

I rent my house in Houston out for $4,300. And it’s not that great. 100 years old. About 2000 SF. Odd layout with only 1 full bath. 

But it’s in a nice hip trendy area. There are 1000s of $1m+ homes that rent for more

I bought the one across the street a few months back for $550k and rent it for $4,200. Not the magical 1% level but nearly 0 management cost given it's just another SFH for my team to take care of where they have plenty of other buildings. Returns about 12% CoC conservatively