@Sanjoy V. its not foolish to invest out of state, totally doable if you have a good team and good PM on the ground.
This is the key, to have a good team on the ground.
The way to go about that is to research the market, Visit the market, and form relationships in your target market. I made good friends in Arkansas and JAX Fl although i don't live in these markets.
I agree that at 5% or for me even 6% cap the cash flow is not so attractive in raising interest rate environment. This is provided of course that there is no major upside to rents etc.
It is Unrealistic and wrong to say that " you will have Mgmt run the apartments and you just take the cash flow; and have nothing to do with it?"
Real Estate is passive but Not passive so you can to do nothing, your roll as owner is to be Asset Manager, over see the property managers on the ground and make sure they are doing their Job.
Buy @David Greene book here on BP:
That would be a good starting point for you!
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