I would like to know which states and cities in America are best for
investment into rental properties. I am looking into Cap Rate of
7-10%, plus low vacancy rates(0-5%).In addition to location, I am also
interested in the positive econimic prognosis for the near future in
the recomended states.  I have been doing some research myself, for
example I looked into Dallas and Austin, TX. The cap rates look very
good, however the vacancy rate is not that good, especially in Dallas.

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Clarification of Question by michael12-ga on 08 Oct 2004 12:32 PDT

Why nobody answers my question?

Well, the problem is that if the cap rate is as high as 7-10%, it is
because the market has more supply than demand, comparatively. I think
this is the reason why nobody has answered you. It is difficult to
find such opportunities.

Now - here is a possible alternative.
http://www.cashflowproperty.net/

These guys claim to provide you a comparative analysis and data for
such properties. I have not used them.

Just to add an observation - if you want low vacancy (or no vacancy at
all) and the good economic growth BUT you dilute the cap rate than
"Los Angeles" area or "Orange County" area in california are worth
looking at.

Hope this helps.