We know that in vast majority of markets it's very VERY hard to produce or create new rental inventory because the margins are so razor thin or non-existent. 

Currently he is happy with his inventory but if I find some farm land to let him know.

If the market flips, we might be talking a different story.My father is being offered 5% buyer commissions in FL from Builders unable to offload inventory. 

Gloria above kinda touched on the Indy market but Indy is great market to look into for a lot of different reasons such as population growth, housing inventory, and cost of entry.

I think that has leveled off with new inventory. 

Unfortunately this is not an option for us as there is no inventory available nearby, and NYC prices are out of range... so we are shifting our perspective to possible out-of-state investing in order to get started down the path.

We are at tipping point to return to recession.).Seems to me (at least in California) like the past 10 years have been in EXPANSION but inventory remains low.  

In contrast, single-family inventory has surpassed pre-pandemic levels, offering better deals in the SFR market right now.

I believe this is because of the sheer lack of inventory of 1-2 or 5+ bedrooms. 

Yes, there is definitely more inventory, but there are still buyers out there.