I have a SFR rental property in St Charles MO. 

Charles County along with a few areas of St.

Lease agreements are huge as Charles indicated.

Charles and Steven gave you half the answer to your question.Let me use Steven's example where a $500K property with a basis of $250K is exchanged for a $1 million residential rental property.

@Charles Carroll while I’m still trying to determine the specific market to invest in, I’m looking to invest in a market that is in either Connecticut, New Jersey, or New York that is 2-3 hours driving distance from Suffolk County.

@Charles Kao - How has your real estate investing journey been going? 

@Charles Morgan APOD/proforma was completed and this property cash flows after the 90-day notification period.  

Many of those people actually sell their properties under a 1031 tax-deferred exchange to get the equity out of the state.And like @Charles Lemelle points out, it's nearly impossible to find property with a 1% rent-to-value ratio here.Trying to invest in condos here is also an expensive proposition as the condo fees are often very high.Last but not least, don't bank on appreciation. 

Thank you,Charles Kappe

It takes time to figure all these things out and you want to be fully prepared for when a deal comes across your table.I hope this helps,Happy Investing,Charles