In state vs Out of state cashflowing
Hello
I've seen posts and profiles of people who own RE in multiple states. I've also seen posts and comments stating that anyone who rents out a property farther than easy driving distance from their own home should be in a rubber room and watched very carefully. I already understand the facts of being too far away to easily, and personally, address issues at the property. But, there are management companies who (for a fee) will take care of the property for you. Or, am I missing something about those services?
I'm seeking this information because I live in Southern California AND I am a newbie. Everything is being bid up within a half hour from where I live. Even in the areas where I do not want to buy. I'm contemplating cash flowing in WI, where I was born and where I have relatives (some basic support structure) Also, the market there seems to be where SoCal was in 2010-2011. i.e. a LOT of price cutting and REOs coming on market.
All that fails to mention that I can tie up several properties for a fraction of what I'd need to invest in one property in SoCal. (diversification should spread risk, shouldn't it?)
Please enlighten me. I'd like hear whys and war stories.
Thanks.
Bill