For southern states, you might want to look at smaller markets in Alabama, Mississippi, or parts of Tennessee and Arkansas where properties are still affordable and cash flow potential exists.

These are becoming very affordable from retailers like Home Depot and Floor and Decor, and they really set you apart from builder-grade homes!

Westchester, although one of the hottest markets, has a ton of upside with opportunities for both cash-flow and equity. 2-4 family properties in Westchester are the 2nd most affordable in the NYC Metropolitan area (next to Suffolk County) making it easier to find cashflow opportunities when compared to the boroughs and other suburbs like Nassau.A client of ours in Westchester recently purchased a < $800K 2-family with a detached 3-car garage which brings in additional rental income - from a local business owner with commercial vehicles.

It doesn't dot the I's or cross the T's the way most investors would analyze the market. 

Still decently affordable. 

In Philadelphia the fundamentals are strong: leading industries/employers are in the Education and Medical fields which are known to be stable, proximity to NYC and DC, national airport, port city, affordability compared to mid-atlantic predecessors.

Thanks @Eli Epstein - I would be interested in connecting w/r/t the NJ market.

@Tove FoxInvesting out-of-state can be a great way to tap into affordable markets with strong rental demand and solid returns.

Not many people here can afford $5000/month rent or would they. 

You could also team up with another investor to afford better deals or start wholesaling to build cash before buying rentals.