First Rental In Colorado

[Vitaly Sa]

I have graduated college, looking for full time work, and am looking for a home to live in and rent out a room. So ideally 2/2 or bigger. I am looking at auction.com for foreclosures as well. If I were to find a proper foreclosure I could get access to cash. I have a few areas in mind but would love some suggestions on the matter:

What should I be looking for in a foreclosed home (positive/negative)?

Should I purchase an investment property in a different state and rent in my local area instead for a less expensive upfront price?

What precautions should I take when looking for a tenant?

Thank you!