In which State, I should buy a house for rental investment?

I would like to buy a house for investment purposes at a price of $300k or less (putting 20% down). I am a Texas (Houston) resident but I am willing to make investment in any state that brings higher returns. I wonder which state will be the most suitable from various aspects including property taxes, state (non-resident) income taxes, quality of schools, appreciation of real estate property, rental values, etc. Thank you for your time.

Public Comments

1. http://www.statesman.com/business/content/business/stories/other/08/16reca.html http://www.news8austin.com/content/your_news/default.asp?ArID=171463 http://austin.bizjournals.com/austin/stories/2006/10/23/daily6.html?b=1161576000%5e1364972&surround=etf Check out the above links. Austin is predicted as a prime location for growth and stability in the housing market. Maybe I'm a little biased, but that's the information i've seen in the last few months. I am a Realtor® in Austin. I've seen an huge influx of investors, mostly from CA, come into the Austin market to do just what you are looking at doing. I wish you good luck and great fortune wherever you decide to go with you investment.
2. I think how you buy is more important than where you buy. If you plan on managing this property yourself, I would keep it close to your home. If the property produces positive cash flow(the rent you take in is more than mortgage payment,tax, insurance, maintenance, and vacancy%) then its a good investment where ever it is. I would also consider getting two (or three) properties in the 100k-150k range as opposed to one house in the 300k range. Hope that helps.