Investing in a high priced big city vs going out of state

[Grant Stucki]

I live in Denver and have a couple rental properties but have a goal of getting to at least 25 units in the next 5 years. My question is if it's always better to purchase properties in cheaper market where it takes less capital and the rent to price percentage is easier to get above 1% or if it's worth investing in a city like Denver where it's very hard to get the rent/price ratio over 1% but the cost of the real estate increases much quicker than it does in other less desirable places to live? Does anyone have any thoughts on that?

[Brandon Sturgill]

True, your dollar will go much further in Kansas City than in Denver, but the number of units you want to own has nothing to do with whether or not you'll accomplish your investing goals...I mean real goals, meaningful goals. Number of units is the biggest misconception in this industry. There is a lot to consider when investing long distance. I work mainly with California buyers and we operate on several basic tenets; mainly, transparency and communication. If you go out of state, make sure you have a strong agent/team that you trust...this is likely a relationship built over time, so be patient. Never sign an exclusivity agreement with any broker or agent. Good agents have the incentive to bring deals to the table...and deals can come from lots of sources. Find someone that knows how to source off-market deals (not trash properties from motivated sellers in low class areas). 

Investing is all relative...for example, I'll take a B-class property that breaks even every month over a C-Class property that cash flows $600/mo. because it works better for my plan and style...the point is that any rules about returns are crap. 

Best of luck @Grant Stucki