Why you shouldn't invest in parts of California, Missouri, Illinois, or Kentucky

[Greg Scott]

Real estate has always been location, location, location.

I've often heard BP use the terms "Cash Flow markets" and "Appreciation markets", and they are generally referring to low-priced markets as "Cash Flow" and high-priced markets as "Appreciation". But is that really true? That seems a gross oversimplification that can result in bad returns.

I've personally invested in some low cost markets that gave me great cash flow and above average appreciation. I'm certain there are markets out ther that the do not cashflow that have lower-than-average appreciation. The real key to better ROI is buying in markets that are growing. If an expensive market is experiencing growth, you will see prices surge. If you are in an inexpensive area that is growing, you can often get both cash flow AND great appreciation.

With that in mind, I thought it worth sharing this fresh US Census data. Here are some great places to invest, and some places where you may want to avoid. If you want to read more, here is the link: 

[Nathan Gesner]

Thanks for sharing. There are other factors to consider, such as the quality of landlord-tenant laws, the court's ability to protect landlords, the ability to find a quality property manager, etc. But this is a great start.