I agree with the idea of re-investing out of state, but I would be very careful and very selective with where you choose. Illinois wouldn't even be in my top ten given the tax burden there, and the fact that they're losing residents faster than they're gaining.
I would focus on metro areas with strong diversified job markets, preferably ones that could withstand a near term economic downturn, and with growing populations. I would avoid any metro area too heavily reliant on one industry. I prefer metro areas with at least 3-5 medium to large companies. I would stray away from areas with only one or two big companies employing the majority of residents, unless they're very strong stable companies (i.e. Walmart Bentonville AR). Another attribute to consider would be an area with at least one large university.
Some examples I would consider fit into the above criteria:
- Atlanta GA (strongest job market of this list)
- Memphis TN (lacks a large major university)
- Indianapolis IN (lacks a large major university)
- Columbus OH
- Nashville TN (fastest growing of this list)
- Pittsburgh PA
Given the current state of the overall economy and the current unemployment rate, I think you could find strong returns in many different metro areas. What is difficult is trying to foresee which metro areas will continue to grow and prosper in a weaker economic environment...or at the very least not contract. As is with buying anytime the economy is doing well, there's always the risk you're buying at or near the top. This is just my opinion, good luck!
