All Forum Posts by: Todd Knudson

@Rajiv Bm start by clearly identifying your objectives and criteria and quantifying them. The more specific you are upfront, the easier it will be to narrow down your chosices. If your strategy is long term buy and hold, look for markets with good growth potential and not just immediate cash flow. No one gets rich off of cash flow alone and in fact, on average, only about 1/3 of returns come from cash flow. Real wealth comes from investing in markets with long term appreciation potential and rising rents. Start by identifying states with low to moderate property taxes and insurance and favorable landlord tenancy laws. Then look at the markets within those states that have growing populations, jobs and incomes. Look for markets that have modern/diverse economies and industries. These are the markets that will have the best long term appreciation potential rental growth. Personally I like Indianapolis, Kansas City and the Quad Cities. We've been active in all of them for years and they check off all of the boxes above. Feel free to connect and I'll be happy to share more insight on any of them and how to go about choosing a market.

@Rajiv Bm I have seen great returns in Kansas City for multi family. 

I've decided to look to buy my first true investment property starting out with Out of State rental purchases (i am based out of California)

I'm having a difficult time deciding where I should be looking to buy. I'm considering either a small multifamily (duplex or four-plex) or perhaps a single family that will be easy to rent and cash flow. 

For those who invested out of state, looking for some guidance how did you decide on your market?