I'm a wholesaler in the Houston area and I've made some connections with a title company that is in Dallas. My question is do I need to have a local title company? Or is this relationship fine for my wholesaling deals?

Without addressing wholesaling, the title company does NOT need to be local - just licensed in the state - so you're good to go.

@Clinton Turner I have clients that do this often. It's convenient to work with the same reliable title company no matter where your deal is. Just check that you title company is set up to work in that particular county first. If there is a branch of the same title company in the area, they may have to split the deal with them. Some title companies are just unwilling to do this, but most will.