Kenny,

I agree with Oregon. If you are looking for cash flow, Ohio ( Dayton, Cincinatti) is good as well as Pittsburgh Pa, and Memphis Tennesee. The rental demands are high and there are very good deals under 40k. I have been actively investing in different cities. I have tried Indiana, but was not happy with the quality of the homes and I felt the rental income was just too low. the other areas have double the rents and the homes are sturdy and of good quality. There is always the bonus of having equity in them for whenever you wish to sell.