Analyzing market to invest

[Lalit K.]

Hello If you are not investing locally, how do you analyze market to invest in (out-of-state) ? Assuming cash flow / yield almost similar in these markets, which of these have better appreciation potential over course of say 5 years- Dallas, Austin, Orlando, Jacksonville, Indianapolis, Kansas City , Sacramento? Thanks,

[Scott Pollard]

That's very subjective. I would say that you find a market that interests you and learn that market inside and out. Within each of those markets is a hyper-local sub-market that can differ from the general area. I believe it's too broad to say one entire city over another vs. specific areas in each. Either learn as much as you can about one or if you have time, multiple, or set yourself up with people in each that are very familiar with each area and sub-markets that can identify opportunities. 

I'm in Austin and would say if you're looking to cash flow, this would not be the right place.