Where is the soundest state/county to invest in America?

I am thinking about Detroit and Atlanta because that is what the English company I prefer seems to be offering but am totally in the dark.  I really thought I had missed the boat as regards American property but it seems not entirely.  Would welcome anyone else's comments about negotiating this minefield.  My conclusion is that the Australian property market is a bubble which will eventually burst.  I'd also love to know how other people manage to put together positively geared investment properties as I seem to make really hard work of this and don't think I have achieved much compared to other people in terms of property investing.

Thanks Bronwyn, I have read part of your blog – very informative and will finish when I have some more leisure – I spent hours on the weekend trying to research Detroit.  Would love to talk to you.   I am determined to do something property wise in the US in the next few months.   Will email my number to you and perhaps we can have a chat.

I disagree that Detroit is a dying town. Yes they are in the duldrums at the moment with the car industry the way it is, but I believe there is no way that it will entirely fold, one way or another it will survive and the town will pick up again. There are thousands upon thousands of people there needing to rent. Even the US Gov. is helping them out.
I have heard a figure of 27000 people per month looking for rental accomadation.

I have now spent so many hours researching Detroit property but I have to say the more I know the more I am put off.  For example, one area which I was told was a nice middle class area, Bagley, came up as having 63 sex offenders in the area when I hit upon an interesting site you get to if you just google the zip code.  Then another real estate agent I hadn't tried before brought up hundreds of houses ranging from less than $100 to the low thousands.  Another site in which Detroitans and ex-Detroitans shared views about the current plight of the city was also illuminating.  There are no less than 12,000 empty and derelict buildings in the heart (well it has no heart really it would seem)  of the city and as those buildings are gradually being demolished wild animals are literally moving into the vacant open tracts of inner Detroit.  Can a rustbelt come back?  It's cheap and there are some nice houses but you have to put this alongside the regular incendiary attacks on the Devil's Night (night before Halloween) each year and even though they are less than they used to be, they are still in the 100s.  So what a peculiar and fascinating place but a place to buy????

So you have been to Buffalo and looked at the market first hand?
I have walked through many homes in Las Vegas, Rochester, Buffalo and Detroit just a few months ago and thesemarkets are worlds apart could not even be compared to one another (Buffalo & Detroit)
for example homes under $30,000 in Buffalo were about the same price 10 years ago
Homes in Detroit under $30,000 were well over $100,000 2 years ago

The quality of homes are very different also and rental demand for a good home in a good area is very high in Detroit, I should know I own rental homes there 
I was on the ground and I going back in March, If you don't feel great about Detroit fine
One less investor who won't be in my way
If you change you tune and want to see for yourself try my property tour it will change your mind

Well Jason

That’s you opinion. Detroit has just been named by Forbes Magazine as the most dangerous city in America. Seems like a great reason to invest there.

Not at all

I just have a different view to you and others as where are the best places to invest. There is no black and white answers. I just prefer Texas. It has a thousand people a day moving there. Bet you cannot say that about Detroit.

I have no doubt that you mean well and that you provide a good service. So I am not questioning the standards of your business I just do not agree with you . I think that there are better and safer places to invest, rather than Detroit.

Everyone has the right to their own agenda I guess. My agenda is that I would like to purchase at least two properties using cash in the coming months in the best location I can find within the States.
This means I need to research rental yields, capital growth, unemployment etc. Feel free to join forces if you have a common goal.

On a separate note does anyone know of a tax grant for people buying houses that is set to end on 30th April?

I will prefer California as best. Because value of land here is good and it is rising. Communication, facilities, weather everything of here is quite satisfactory. Moreover new projects are under construction. So easily you can get a property here.

Do you think the fact that all the US states are bankrupt makes any difference to which one you invest in?