Do you invest in states other than your own?

[Brandon Reiter]

Just wanted to get everyone's take on investing in SFH rentals in other states. Does it diversify (within Real Estate) your portfolio? Yes. Does it create more headaches? Maybe?

Below is a list of the top ten places to buy a rental (from CNN):
1. Las Vegas
2. Detroit
3. Daytona Beach
4. Orlando
5. Warren, MI
6. Bakersfield
7. Phoenix
8. Atlanta
9. Reno
10. Tampa

Personally, I live and invest in Billings, Montana. Most people probably wouldn't think it's a great place to invest; however, Billings has one of the best economies in the Rocky Mountain region. Lots of industry: refineries, healthcare, banking, and farming.

What makes your city worth investing in? I'm curious to know what makes your city tick.

[Steve K]

Once CNN makes the list it's probably time to start looking elsewhere. I'm not finding much in Orlando that is worth buying anymore. Even with rentals finding even 1% of purchase price is becoming difficult. Tampa is similar.

I'd expect the local market to stagnate pretty soon.