I'm a mortgage lender and investor located in St.

If you're just getting started, stay local.

How do you go about finding areas to invest in with limited capital?

Quote from @Jill Young: I'm interested in purchasing a property in Texas (that's in a great location for STRs).

Are you located in DFW area?    

Plus each house sitting empty for t months seems wasteful.)But it’s hard to find a warm but not hot and humid location.

The STR market was great a few years ago but now too sure now unless you have a great location.

I am selling one property and planning to do a 1031 exchange. I will have about 200k-250k cash from it. Any good area so you recommend for buying a rental property ?

@Arlinda RexhoWhen considering a 32-64 unit multifamily property in Texas, focus on strong locations with population growth, proximity to amenities, and low crime rates.

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.