They sold two appreciated duplexes in Dallas and we turned them into 8 units in Mesa, AZ with higher cash-flow, and much closer proximity to Southern California.I'll add to your Phoenix "pros" list:1) Landlord friendly rental rules2) Easy evictions in < 30 days3) Rents are rising faster (on a % basis) than many other metro areas4) Low property taxes (and the property taxes don't sky rocket after a purchase as they do in CA)5) Very low vacancy and extremely high tenant demand.

Quote from @Steve Lehman: @William VreelandAs a local Indy Investor and RE consultant I have been flowing the IHA development closely to see what kind of developments have been happening.

The big downside of these established markets is that they tend to be expensive and hard to make cash flow.

It's a good place for flips; cash flow maybe not so much compared to mainland markets.

If rents are under market, consider small increases or exploring additional ways to optimize your cash flow, such as taking on another roommate.Refinancing is also worth exploring in the future.

I'm looking to add another 3K in cash flow, hoping to do it with a smaller apartment building if I find the right one. 

If you have savings, you can still utilize the VA and put more down and that will increase your cash flow in the short and long-term.

If cash flow is your main driver, not sure how well the Madison, WI market would stack up. 

Quote from @Angelo Llamas: I’m doing medium term rentals and I’m breaking even cash flow wise.

It can be done, but don't assume "they will cash flow nicely".