Buying properties in a hot seller's market
I've recently moved to Seattle from the Midwest. From what I've seen so far, things are going with multiple offers in a highly competitive market. I am familiar with a couple other areas in the Midwest, where prices are lower and there is less competition. I have two rentals there that are managed by PM's.
Is it better long term to jump into the fray and try to invest locally, where prices are higher and competition is higher, or invest in the other areas I am more familiar with, maybe not as hot but where prices are lower, inventory higher and there is less competition for properties?
Out of state ownership isn't the best, so maybe I am not looking at the market in the right way. I am most interested in rehab/rentals; I have some capital but not a lot.