I'd like to see us develop a list of good questions that we could use to weed out trouble makers, yet still help us maintain a vibrant community of diversity.

There are a lot of markets that will cash flow in these regions but assuming you will be holding long term, you should focus on those markets that have growing populations, growing jobs, diverse, modern economies.

@Brian Singh Bay Area market is diverse and consists of various pockets. 

Just like NJ which is very diverse the areas around the bases are as well.

I'd likely consolidate in one market area for the ease of management but diversity into several small / midsize properties to spread my risk a bit. 

In our small to midsize markets, however, I have seen a trend of inner city neighborhood revitalization driving markets back to downtown areas when the suburban new construction sprawl just gets too boring and expansive despite the price.I would add that you should look for a diversity of industry when considering long-term markets.  

Listen to all 180 or whatever and you will have one heak of a diverse view on REI.  

After that, choose a market that has a diverse economy and not too heavy in one sector or another.

Milwaukee is a mix of very diverse submarkets. 

Also, the economy is generally wealthier and more diverse in Boston and L.A.