I have referred a loan out of state based on NOI, cap rate at purchase, room for increase income and purchase price vs market value.Maybe I didn’t articulate the intent of the post as clearly as I hopedFor anyone who has bought multi family out of state, “what are gives you the warm and fuzzies about a deal”:Obviously not cap rate, but maybe vacancy rate,  Cash on Cash ,GRM, IRR, Unlevered free cash flow, Cities over 250k?

One would be amazed at how many cities were platted between 1900 and 1940 in CA then the slow build out started..

I would like to know how to read the market a lot better and learn how I can see wether or not a certain city is thriving or not, if where I purchase the duplex is thriving I'll just settle there and target SFH's there instead of moving out of state.  

I generally recommend if you're not going to buy a property in the city/market where you currently live, the next best place to look is where you have family (and presumably a place that you'll visit relatively often and easily).What is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper", assuming you buy in Peoria or a similar priced Midwest market?

Absent them, risk is controllable over time.I self manage a SFH in the Bay Area in a very pro-tenant city (some cities are a little less pro-tenant than others).

The City of Portland, and Multnomah County are more restrictive than most of the state for instance. 

Since you can’t do a formal inspection, a detailed contractor walk-through and phased renovation estimate are key.Have you considered checking city records for past permits to uncover any unaddressed issues?

The tricky part will be to get the the city to change your property's zoning to multi family (if it isn't already).

I’m very familiar with the city but have been gone three years, so curious what’s happening on the ground.

Looking to purchase a duplex, triplex or fourplex in Panama City and do short term rentals for summer months and long term through the winter.