I'm currently working with an overseas client who is looking for a multi-family property. They have a specific request.
The best answer is depends on your future plans. Do you want to keep for short term, then high cash flow will be your target, or keep longer and look for property value appreciation.
Yes some cities have rent control, but also there is real estate tax cap, in long term, real estate tax is so min. as if free. plus, about 1.25% real estate tax is very small. (compare to about 4% without real estate tax cap rate in another state).
Next 5-10 years, generally talking real estate cycle is about every 7-8 years. So 5 years for short term, but 10 years can be a different story.
My experience from my own rental propertis, in upscale neighborhoods property value increases faster and more. Demands is high, rents are high, less to no headache. In other neighborhoods, if you buy cheap, fresh up (I'm not talking about rehab), and understand the dynamics of neighborhood (for example if most residents in the neighborhood are young,single people studio or 1 bedroom apts are more preferable, but families with kids, they need bigger apts.). then you may get pretty good cash flow, but the value of the building will not appreciate as much as if it was in upscale neighborhood.
if you would like to see some samples, more info, any questions, please don't hesitate.
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