What are the best cities to invest in midterm rentals which will cash flow and appreciating year over year?

Hi Lina -- I'm based in Dallas but wouldn't know the laws for the city and county of Kyle, Texas.

I am a young investor (23) and currently have 4 single family residential rental properties around the Kansas City area.

Hey @Mike Nelson, never assume anything about STR rules and regs.Here is the STR rules for Oak Park - https://codelibrary.amlegal.com/codes/oakparkil/latest/oakpa...I would call the city and make sure it is legal for a specific property.Now regarding the famous person angle, sure it can add value to the property or as a STR, but for STR use, I would think you would need it to be in original condition with a lot of the furniture and knick-knacks that were owned by the famous person along with a bunch of photos etc featuring the famous person.If you buy a place that has been totally redone but was owned by someone famous but has no features or things that were theirs, then I don't see it being a draw. 

I plan to visit all three cities soon to get a feel for each one, but when should I start building my team and actively searching for deals?

I mainly want to ask if these assumptions are reasonable and if there's anything I haven't considered:(1) multifamily units in NJ close to New York City, ~$1,000,000, 20% down payment, (2) Using the following assumptions: 4% appreciation rate, 6.5% interest rate and 5.0% refinance after 5 years, $10,000 yearly maintenance fee(3) ~$6,000 monthly rental and assume 3% increase yearly with 5% vacancy rate(4) Based on the above, the calculated IRR if selling at the 10th year is ~19% (considering tax benefits) and ~17% (without tax benefits).

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!

She will probably game the system for the next 6-12 months, but that's what you get buying a property with a non-paying tenant in place, in an anti-landlord city. 

I had a client use one for their house hack in salt lake city area and it worked out well!

As a result, her and I were able to buy our very first investment home back in 2006 from the brotherly love city of Philly which is where I also met my husband.